2023-11-22 11:10:48 ET
Intel Corporation (NASDAQ: INTC) has been in an uptrend lately even though a recent ruling of the Germany’s constitutional court created new hurdles for its planned investment in Europe.
Germany has announced a spending freeze
Last week, the largest European economy announced an emergency spending freeze following the said ruling which could cost billions to Intel in subsidies, as per Sven Schulze – Minister of Economic Affairs for the state of Saxony-Anhalt.
When Germany cannot afford such future projects like Intel anymore, then the economic damage will be enormous and the image damage gigantic.
He made the remarks while speaking with WirtschaftsWoche – a weekly business news magazine of Germany.
We’re excited for #AWSreInvent to showcase how Intel and @AWScloud bring #AI everywhere from edge to cloud to unleash your data’s potential. Learn about our efficient, scalable solutions at https://t.co/fbEXlic1AR . ¿¿??? pic.twitter.com/93xkX8Q91k
— Intel (@intel) November 21, 2023
The news arrives about a month after Intel Corporation reported its financial results for the third quarter that handily topped Street estimates.
How much had Germany initially committed?
The German government had originally announced €10 billion ($10.87 billion) in subsidies for Intel to set up a leading-edge wafer fabrication plant in Magdeburg.
In September, the chipmaker was reported struggling to staff the facility in the capital of Saxony-Anhalt that’s part of its commitment to investing about $88 billion in pursuit of expanding manufacturing in Europe over the next decade.
Intel is yet to comment on remarks of the state economy minister on Wednesday.
Last month, Invezz quoted “The Information” to report that Intel Corporation is working with notable consulting firms on AI apps similar to the ChatGPT. Wall Street currently has a consensus “hold” rating on its shares.
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