A huge thing for Penzing – Bavaria

When it comes to the dimensions that cause hope and fear around Landsberg am Lech, words are sometimes missing. Gabriele Triebel finally decides on “Gigant”. The region is already struggling with all the side effects of economic success, says the local Greens’ member of parliament on the phone: people are no longer finding affordable housing, craftsmen are no longer people, and there is in fact full employment. And then still build a huge factory in which thousands of people are supposed to work one day? “Those are dimensions,” says Triebel, “you can no longer imagine them.”

It would actually be a huge deal if Penzing near Landsberg were awarded a contract for a new chip factory from Intel. On the one hand, such plants are few and far between in this country, while the shortage of semiconductors is currently causing the industry to despair. On the other hand, the facility would be really big. “In the first step we are building two factories,” said Intel boss Pat Gelsinger in September FAZ-Interview, which has since served as a benchmark everywhere. “Then in the next few steps a third, fourth, fifth, sixth, seventh and eighth. Each of these factories is huge, and all of them together make up the mega-fab.” High tech on an estimated 500 hectares. For comparison: Penzing has around 90 hectares of built-up area, the neighboring Landsberg has around 1000 hectares. And the BMW plant in Dingolfing, Bavaria’s most famous industrial plant, covers 280 hectares.

Of course, nobody knows yet whether the “mega-fab” in Penzing will ever become a reality. Intel is keeping a low profile. The US group wants to expand its European business. A handful were left of around 70 possible locations. A company spokeswoman says that they have “confidential talks” and that a decision should be made this year. Until then, the question marks about the project in Penzing will remain almost as big as the project itself. And the worries. Not only Triebel is skeptical. She would appreciate it if Intel came to Bavaria and Germany. But first you have to check whether other regions are not more suitable as a location. As far as settling in the “overheated” metropolitan region of Munich is concerned, “for me the disadvantages outweigh the disadvantages”.

Environmentalists have already raised concerns

The only thing that is certain is where everything could begin: at Penzing Air Base. The Bundeswehr leaves, there remains emptiness. How to best use them for the future is a big topic in the 4000-soul place. 90 percent of the area belongs to the municipality of Penzing, the remaining ten percent to the city of Landsberg. There, a city council resolution from the end of October provides for the areas to be over-planned in a “high quality” manner. “Due to the great importance of urban development and the potential for innovation, this development will trigger an impetus for the district and the region.”

But it is precisely this “impulse” that worries many in the region, not only because of the already rising housing and land prices. Environmentalists have also publicly reported concerns: The former air base covers 270 hectares, i.e. around half of the required area. If the 500 hectares remain for the factory, the other half would have to be acquired in the area. Meadows would then be sealed and infiltration areas for heavy rain would be omitted, so a fear of local federal nature conservation representatives. Because the production of semiconductors also consumes a lot of water, this could pollute the water balance in the entire area.

For others, the focus is on the potential. Mayor Peter Hammer (CSU) also keeps a low profile when it comes to inquiries on the subject. By e-mail, however, he refers to a statement in the local Circle messenger. “If Intel should actually decide in favor of Penzing as its location,” it says, “issues such as space requirements and skilled workers will then be clarified in a target-oriented manner in close coordination between the state, municipal and company sides.” The infrastructural challenges are in view, the settlement could “represent an enormous opportunity for the region”.

More and more products need chips

The state government is also hoping for a contract, a chip factory would be a huge thing for them too. Digitization, high-tech, lighthouse project – there is everything in it that Prime Minister Markus Söder (CSU) and Economics Minister Hubert Aiwanger (FW) like to talk about. Not to forget the advertising effect for Bavaria as a business location: You notice that projects of this size radiate far beyond the state’s borders in Brandenburg, where Tesla wants to produce large-scale e-cars in a “Gigafactory”. Whereby, what does big mean compared to what could grow in Penzing? At that time, Tesla bought “only” 300 hectares. The state government then had to listen to criticism as to why it had not brought the plant to Bavaria. An Intel deal would give the right answer: Look, we can always go one size bigger.

However, what is a dream for some and a nightmare for others does not have to become real in Penzing. Perhaps the conflict will simply resolve itself because the conditions are better elsewhere. In addition to sufficient space, we are looking for skilled workers for semiconductor production. They can be found in the wider area, for example at Infineon in Neubiberg or Texas Instruments in Freising. Or in Dresden. The Saxon state capital with its semiconductor ecosystem is considered to be the big competitor in the selection process. Around 60,000 people work in “Silicon Saxony”; Infineon and Bosch, among others, operate factories and research institutes. Much also depends on the financial framework. The planned total investment amounts to “80 billion euros within the next ten years” – so writes Intel Germany boss Christin Eisenschmid in an online article. Part of this could come from the billion-dollar funding programs planned by the EU. Currently, just under ten percent of global semiconductor production comes from Europe. Brussels wants to change that in order to make the economy more resistant to logistics problems and trade conflicts. More and more products need chips, be it dishwashers, ventilation systems or cars. The supposedly small parts have long been a huge thing for industry as well. It was only on Thursday that the Free Voters in the state parliament therefore submitted an urgent motion on the supply situation for the Bavarian semiconductor industry.

With a decision in favor of Penzing, the Free State has already signaled that it does not want to be sloppy when it comes to support. Is that enough to hold your own against the competition? Even in the basically optimistic Ministry of Economic Affairs, it is assumed that things will be tight. Gabriele Triebel’s forecast: “fifty-fifty.”