- 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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