Intel (NASDAQ: INTC) could be seeking additional funding between €4 billion and €5 billion (around $5 billion) from the German government for its chip-making plant in Madgeburg, Bloomberg reported. The chip-making giant has already secured a deal from the German government for €6.8 billion ($7.2 billion) in the form of subsidies for this plant, subject to approval from the European Commission.
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The company had already postponed the construction of the plant last year due to macroeconomic headwinds and is now looking for more aid, the report stated. Intel’s original estimate was €17 billion for the German plant but now expects to spend €30 billion.
Intel was expecting around 40% of this project to receive a subsidy through the EU’s Chips Act.
Analysts remain sidelined about INTC stock with a Hold consensus rating based on four Buys, 18 Holds and seven Sells.