When Reiner Haseloff talks about the planned Intel settlement in Magdeburg, there is no lack of pride: “We are a rising country,” says the CDU Prime Minister of Saxony-Anhalt, “we want to play at the top.” A new era is dawning for the country, comparable to the historic fall of 1989/90. The construction of a mega-factory, for which Intel wants to invest 17 billion euros in Magdeburg, catapults the hyphenated federal state onto the world’s most important business locations in one fell swoop. Even the Tesla Gigafactory in Grünheide “only” has an investment sum of 5.8 billion euros.
Magdeburg outperformed 70 location competitors in Europe, and now they want to cast off the role of Cinderella in Germany too. “I am sure that Saxony-Anhalt will be able to leave many federal states behind in the next few years,” says Economics Minister Sven Schulze (CDU). A total of at least 10,000 new jobs are to be created – 7,000 are needed for the construction phase starting in 2023 alone. In the two planned Intel semiconductor factories, 3,000 specialists will then work permanently in chip production, and thousands more could follow – provided the EU releases the funding for its part.
The tech group is also not stingy with confidence: “We’ve hit the jackpot,” says Intel Germany boss Christin Eisenschmid Süddeutsche Zeitung. In addition to the availability of the right area of 450 hectares (“flat, square, free of contaminated sites and earthquake-proof”) and the good infrastructure, the decisive factor for Magdeburg was the prospect of getting the right specialists. In a declaration of commitment, the state government and the Federal Employment Agency (BA) even give Intel a guarantee for this. Haseloff, formerly director of the employment office in Wittenberg: “We are aware that we have to deliver here.”
In order to be able to keep up with Intel’s planning speed, a separate staff department called “Silicon Junction” in the State Chancellery will take care of all Intel questions. The BA is also setting up its own Intel team, which will later be located directly on the company premises. The BA proudly looks at the example of Tesla. They supported “a four-digit number” later employees and gave 600 unemployed people a job. Matthias Kaschte, head of the employment agency district of Saxony-Anhalt North, also knows: “We are facing a major challenge. We need the right people at the right time.” But where do you get them from in times of a pronounced shortage of skilled workers?
“Fortunately we don’t need everyone at once”
When it comes to this question, Oliver Holtemöller sounds much more reserved than the politicians: “It won’t be easy to find so many qualified specialists,” warns the Vice President of the Leibniz Institute for Economic Research in Halle. The IWH has calculated that by 2060 the decline in the employable population in eastern Germany will be more than twice as great as in western Germany. Holtemöller: “This problem will not disappear as a result of the settlement of Intel. Saxony-Anhalt needs considerable immigration on a permanent basis if economic output is not to be dampened. Qualified workers are sought everywhere, so nobody is waiting for a chance in Magdeburg.”
But Intel has made it a point to recruit as many specialists locally as possible. “We also hope that we will get workers back who have migrated over time or who currently have to travel far,” says Christin Eisenschmid. According to BA statistics, 140,000 employees commute to work in another federal state, while only 68,000 people come to Saxony-Anhalt for jobs subject to social security contributions. With almost 800,000 employees subject to social security contributions, the country is currently losing 72,000 workers.
“Of course we are in competition with other companies for the rare specialists. Luckily we don’t need them all at once,” says the Intel Germany boss. Eisenschmid relies on the proximity to universities and research institutions; within a 100 kilometer radius, Magdeburg has seven – a big plus. We strive for a close exchange with them.
What stimulates ambition in Magdeburg had triggered defensive reflexes elsewhere. The town of Penzing near Landsberg with a population of 4,000 was also in the running for the German Intel location with a former air base. There, however, the enthusiasm was already limited when applying: rising housing and land prices, land consumption, possible water shortages, a massive influx of foreign workers – the list of worries was long. Saxony was also shortlisted, but ultimately could not offer a factory space that would have been large enough. The fact that Magdeburg is now coming into play is officially booked up the Elbe under the heading of success for the East, but is not too sad behind closed doors that a mega factory from Intel is not competing for specialists for the already existing chip production in “Silicon Saxony”. brought into the house near Dresden.
“If the people are not there, they are not there”
But no one wants to be stopped by doubts in Magdeburg, “Saxony-Anhalt will not get another chance like this,” said Prime Minister Haseloff and expects the population to mentally prepare for it. For economist Holtemöller, the supposedly soft factors such as a welcoming culture and cosmopolitanism are also decisive for success or failure. There is still room for improvement, especially in rural areas. In addition to living space and public connections, good internationally compatible schools are important in order to lure top people from abroad. You also have to lower the school dropout rate, because it is far too high in the East, and the IWH has been pointing this out for years. Intel can only give the entire region a boost if Magdeburg combines a culture of welcome, better schools and an increase in productivity. The economist doesn’t rely on job promises from politicians: “If the people aren’t there, they’re not there.”
The state government also knows how tedious the search for personnel can be. In the last round of advertisements for teachers, there was only one applicant for every second position. A year and a half ago, Saxony-Anhalt was the first federal state to start having headhunters search for suitable candidates across Europe. So far, 46 have been committed.