Intel At Risk Of Losing Billions In Subsidies For German Chip Plant Following Court Ruling: Report

Last week's adverse court decision regarding German finances might lead to Intel Corp INTC losing billions of euros in subsidies for its proposed chip-making facilities in Saxony-Anhalt, Reuters reported, citing the state's economy minister. 

Berlin had initially agreed to subsidies close to 10 billion euros with the U.S. chipmaker. 

Sven Schulze, Saxony-Anhalt's economy minister, expressed concerns that if Germany cannot support such future projects like Intel's, it would result in significant economic and reputational damage.

Earlier this year, Intel disclosed an investment of over 30 billion euros in Germany to expand its European manufacturing capacity. The facility will likely create 7,000 construction jobs over its first phase, with a projected about 3,000 permanent high-tech jobs at Intel and tens of thousands of additional jobs across the industry.

In December, Intel reportedly halted its chip factory construction in the eastern German city in the first half of 2023, seeking more public subsidies.

Intel held $25.03 billion in cash and equivalents as of September 30.

Price Action: INTC shares traded higher by 1.07% at $44.10 on the last check Wednesday.

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