Intel At Risk Of Losing Billions In Subsidies For German Chip Plant Following Court Ruling: Report
Portfolio Pulse from Anusuya Lahiri
Intel Corp (NASDAQ:INTC) is at risk of losing billions in subsidies for its German chip plant due to a recent court ruling. The German government had initially agreed to provide close to 10 billion euros in subsidies for Intel's chip-making facilities in Saxony-Anhalt. The state's economy minister warned of economic and reputational damage if Germany cannot support projects like Intel's. Intel had announced an investment of over 30 billion euros in Germany to expand its European manufacturing capacity, which is expected to create thousands of jobs. However, Intel had paused construction in December, seeking more public subsidies. As of September 30, Intel held $25.03 billion in cash and equivalents. INTC shares were up 1.07% at $44.10 in the last check.

November 22, 2023 | 4:28 pm
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Intel may lose significant subsidies for its German chip plant, which could impact its European expansion plans and financial commitments. Despite this, INTC shares were up slightly in recent trading.
The loss of subsidies could pose a financial challenge for Intel's expansion plans in Europe, potentially affecting its long-term growth strategy. However, the short-term impact on the stock price seems neutral as shares were up after the news, indicating that the market may have already priced in the risk or is awaiting further developments.
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