Benzinga | Apr 30, 2021 12:51PM EDT

Intel Needs $9.7B Subsidies For Europe Chip Plant: Reuters

* Intel Corp (NASDAQ: INTC) has sought $9.7 billion ((euro)8 billion) in public subsidies for semiconductor factory construction in Europe to reduce the bloc's import reliance amid the ongoing semiconductor chip crisis, Reuters reports.

* Gelsinger had announced Intel's $20 billion investment in U.S. chip production last month.

* Gelsinger was hunting for a European plant location to support European Commissioner Thierry Breton's aim of doubling Europe's global chip share output to 20% over the next decade.

* Breton intended to drive production supply on its own and through selected partnerships.

* Breton had also interacted with Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) before Korea's Samsung Electronics Co Ltd (OTC: SSNLF) and Intel.

* Breton would hold further talks on May 4 with the CEOs of two Dutch semiconductor companies ASML Holding NV (NASDAQ: ASML) and NXP Semiconductors NV (NASDAQ: NXPI).

* Breton was planning a European semiconductor alliance to bundle the interest of the domestic companies.

* Germany's Infineon Technologies AG (OTC: IFNNF) (OTC: IFNNY) hailed Breton's chip production initiative in Europe.

* Breton was also keen on a German location for a potential foundry.

* Gelsinger also met automaker Bayerische Motoren Werke AG (OTC: BMWYY) and telecoms operator Deutsche Telekom AG (OTC: DTEGF) (OTC: DTEGY).

* He also visited the Volkswagen AG (OTC: VWAGY) headquarter based on sources.

* Gelsinger will visit Israel next week, where it is set to announce a $200 million investment in a new chip development campus and 1,000 staff hiring.

* Price action: INTC shares traded lower by 0.96% at $57.72 on the last check Friday.