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.
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.