BERLIN, Sept 17 (Reuters) - German Chancellor Olaf

Scholz said on Tuesday that Intel ( INTC ) is committed to its

plan to build plants in eastern Germany despite the U.S.

chipmaker's announcement that it is delaying construction by two

years amid cost-saving measures.

"The decision to postpone the project in Germany for two

years is a decision that also includes the intention to stick

with it," Scholz said.

"It is important for us that we take this opportunity in

this very volatile business of the semiconductor industry to

help ensure that there is nevertheless a further expansion of

the already profound capacities in Germany," he said.

Intel ( INTC ) CEO Pat Gelsinger released a memo to employees on

Monday outlining a number of steps the company would take to

revive itself, which included pausing construction at its

project in Germany for two years.

"This is now a purely business decision that has to do with

corporate policy," said German Economy Minister Robert Habeck on

Tuesday, adding that Germany was still committed to building up

semiconductor production in Europe.

Habeck's ministry said in a statement that it was "now

up to Intel ( INTC ) to quickly get back on a path that enables

investment."

The decision by Intel ( INTC ) also triggered a new budget

dispute within Germany's ruling coalition, with the finance

ministry saying funds no longer needed for Intel ( INTC ) subsidies

should be used to balance the books and the economy ministry

pushing back.