Analysts call Intel’s disappointing quarter an ‘historic collapse’ and 'much worse than feared'
CNBCNov 27, 2022
The Facts
On Monday, California-based Intel Corporation confirmed signing a $33B deal with the German government to build two chip manufacturing plants in Magdeburg.
The announcement comes after Berlin agreed to cover a third of the investment, or €9.9B [$10.7B], making it Germany's biggest-ever foreign investment.
The Spin
Pro-establishment narrative
Intel's multi-billion-dollar investment into the EU will significantly boost its chip production amid rising geopolitical tensions. Besides diversifying European supply chains, Intel's chip plants can make the EU more self-sufficient in semiconductors — optimizing the continent's semiconductor industry and allowing tech companies to source the chips in no time.
Establishment-critical narrative
Intel's investment spree in the EU stems from the bloc's deteriorating relations with Beijing and the US' ongoing chip war with China. The move will backfire and hurt the EU and Western semiconductor industry as China is fighting back with new investments to make its chip manufacturing more self-sufficient. The PRC will soon catch up and overtake America in the technology stakes.
