Reported Earlier June 6, 2023 'Germany 'Close To Deal' With Intel For €20B Chip Plant' - Financial Times
Portfolio Pulse from Benzinga Newsdesk
Germany is close to providing Intel with €10bn in subsidies to build a €20bn chip plant in Magdeburg, aiming to reduce reliance on Asian semiconductor suppliers. Intel also announced plans to build a $4.6bn semiconductor assembly and testing plant in Poland.
June 16, 2023 | 4:27 pm
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Germany is close to providing Intel with €10bn in subsidies for a €20bn chip plant in Magdeburg, which will be one of the largest foreign direct investments in the country.
The deal will bring a significant foreign direct investment to Germany, potentially boosting the country's economy and the performance of the iShares MSCI Germany ETF (EWG). The investment in the semiconductor industry may also enhance Germany's technological capabilities and reduce reliance on Asian suppliers.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Intel is close to receiving €10bn in subsidies from Germany for a €20bn chip plant, and plans to build a $4.6bn semiconductor assembly and testing plant in Poland.
The subsidies and new plants will help Intel expand its manufacturing capabilities and reduce Europe's reliance on Asian semiconductor suppliers. This will likely strengthen Intel's market position and potentially increase its revenue, positively impacting its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100