Intel's German Ambitions Hits Roadblock Halted Plant Plans Pending Subsidies

Intel Corp (NASDAQ:INTC) retreated from its initial plans of opening a chip factory in the eastern German city of Magdeburg in the first half of 2023.
Intel sought more public subsidies, Reuters reports citing a regional newspaper.
The plant is pivotal to the German and European Union's plans to boost resilience via domestic manufacturing post-pandemic and Russia's invasion of Ukraine hampered supply chains.
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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.
Intel stated that geopolitical challenges have grown, and demand for semiconductors has fallen. "This means we cannot yet give a definitive date for the start of construction."
Intel discussed with the government regarding bridging the funding gap.
Intel worked with government partners to push the project forward.
Price Action: INTC shares traded higher by 0.38% at $27.02 in the premarket on the last check Monday.