German Chancellor Olaf Scholz said on Tuesday that Intel is committed to its plan to build plants in eastern Germany despite the U.S. chipmaker saying that it is delaying construction by two years as part of its cost-cutting plans.

Chancellor Olaf Scholz voiced disappointment Tuesday after US semiconductor giant Intel delayed plans to build a mega chip-making plant in Germany which had been championed by Berlin.

The news could be a blessing in disguise for Germany’s liberal finance minister, Christian Lindner, who has spent months trying to plug a €12-billion hole in his federal budget. [ Intel prepares for surge in applications for lucrative exit packages at Irish operation ]

Intel CEO Pat Gelsinger announced on Monday that the US-based semiconductor giant is halting the construction of its chip manufacturing plant in Magdeburg, eastern Germany, for approximately two years.

The U.S. chipmaker’s move to delay the project in Magdeburg by about two years is a blow to the EU’s goal of producing one-fifth of the world’s semiconductors by 2030.

US chip-maker Intel is postponing the construction of a factory in the German city of Magdeburg, company boss Pat Gelsinger said on Monday. The project is expected to be delayed by around two years, Gelsinger said.

Intel's delay in constructing its German semiconductor plant disrupts the European Union's chip production goals under the EU Chips Act.

US chipmaker Intel has delayed a construction project by two years amid cost-saving measures. German Finance Minister Christian Lindner called for funds earmarked for subsidies to be used to plug a federal budget gap.

German Vice Chancellor Robert Habeck said that US tech giant Intel's decision to postpone plans to build a major chip factory in Germany won't change the government's strategy around building up semiconductor production in Europe.