Benzinga | Jun 18, 2021 03:32PM EDT

Intel In Talks With Germany's Bavaria For Chip Factory: Reuters

* Germany's southern state of Bavaria discusses with Intel Corp (NASDAQ:INTC) to build a European chip factory to relieve the auto sector from production cuts due to the global semiconductor chip crisis, Reuters reports.

* Intel has been seeking $9.5 billion in public subsidies to build a chip factory in Europe.

* Bavaria has proposed an abandoned airbase in Penzing-Landsberg, west of Munich, as a potential location.

* The semiconductor chip crisis-induced automaker production cuts threatened to de-rail Germany's economic recovery from the pandemic.

* The E.U. is focusing on a semiconductor alliance including STMicroelectronics NV (NYSE: STM), NXP Semiconductors NV (NASDAQ: NXPI), Infineon Technologies AG (OTC: IFNNY), and ASML Holding NV (NASDAQ: ASML) to cut dependence on foreign chipmakers.

* Price action: INTC shares traded lower by 3.01% at $55.45 on the last check Friday.