Intel Shares Allegiance To Germany Chip Plant After Reports Of Fallout Over Subsidies - Intel (NASDAQ:INTC)

Intel Corp INTC Chief Global Operations Officer Keyvan Esfarjani shared their commitment to building its chip fabrication plant in Magdeburg, Germany.
Intel worked out funding details with the government.
"We are committed to making the Magdeburg project successful," Esfarjani told Reuters during a chip conference by Semi last week in Half Moon Bay, California. "While we have to pace ourselves in this current environment, we can't take our eye off the ball."
In December, a regional newspaper reported that Intel halted its chip factory construction in the eastern German city in the first half of 2023, seeking more public subsidies.
The surging energy and raw materials prices disturbed Intel's initial calculations.
Where Intel had initially budgeted for costs of €17 billion ($18 billion), prices were now closer to €20 billion.
Germany's economy ministry's spokesperson told Reuters the government was in "constant exchange with Intel and the European Commission" about the project.
Esfarjani said since the announcement, "geopolitical challenges have become greater, semiconductor demand has declined, and inflation and recession are disrupting the global economy."
He highlighted that Intel had already purchased the land where it proposed to build the fab.
Italy's government reiterated its plans to bag investment by Intel.
Intel aimed to build a chip factory in the country as part of a broader plan to invest up to €80 billion ($85.15 billion) over the next decade in building capacity across Europe.
Price Action: INTC shares traded higher by 0.27% at $29.68 in the premarket on the last check Wednesday.

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