Intel recently announced its plan to delay the construction of two mega chip-making factories in Germany and Poland. The chip maker attributed its decision to a lower demand for its chips than earlier anticipated.

With plans to trim $10 billion from its budget, Intel is halting plans to build a cutting-edge foundry in the green fields of Magdeburg, Germany for around two years. The facility was originally intended to start construction in 2023, with production beginning in late 2027.

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.