Intel could lose billions in subsidies after a recent German court ruling

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.

He made the remarks while speaking with WirtschaftsWoche – a weekly business news magazine of Germany.

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.