Intel postpones building chip factory in Germany's Magdeburg

US chip-maker Intel is postponing the construction of a factory in Germany's Magdeburg, company boss Pat Gelsinger said on Monday.

The project is expected to be delayed by around two years, Gelsinger said.

Intel was planning to build two chip factories in Saxony-Anhalt, creating some 3,000 jobs, with a groundbreaking ceremony planned for this year.

But Intel is struggling with losses and launched a cost-saving programme earlier this year. The company announced in August that it was planning on reducing its workforce by 15% as part of a cost-cutting programme worth billions of dollars.