Intel (INTC) has settled on the German city of Magdeburg as the site for its new European chip factory. Citing a person familiar with the matter, Reuters reports that an announcement could be made as early as March 4. INTC shares rose 2.12% to close at $47.71 on February 24.
Intel designs and manufactures microprocessors, chipsets, and flash memory drives. It also deals in compute, storage, and network products.
European Chip Factory
In September last year, Intel announced its plans to invest $95 billion in Europe over the next decade. The chip giant appears to have settled on Magdeburg in Germany for one of its European chip factory sites. Government subsidies, stability, and readily available skilled workers are some of the other factors that encouraged Chief Executive Officer Patrick Gelsinger to consider Germany for the new manufacturing plant.
The chip giant is also considering Italy and France for building a new design center and packaging plant in Europe.
Last week, DZ Bank AG analyst Ingo Wermann downgraded Intel to a Hold from a Buy.
Consensus among analysts is a Hold based on 7 Buys, 14 Holds, and 6 Sells. The average Intel price target of $54.55 implies 14.34% upside potential to current levels.
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