GermanyThe Ministry of Economic Affairs issued a statement on Thursday (November 11) that it plans to provide approximately 28 billion euros in subsidies to the domestic semiconductor industry to promote the development of the chip industry and technological innovation.
"Bloomberg" reported that the move is a new measure taken by the German government to attract and support high-tech industries after Intel shelved its plan to invest more than 300 billion euros in building a chip factory in Magdeburg two months ago.
According to a statement from German Economy Ministry spokesperson Annika Einhorn, the new funds will be used to support the development of modern production capacity that "significantly exceeds the current technological level." Relevant plans are expected to cover 10 to 15 areas of projects, focusing on green wafer production, microchip assembly and other key semiconductor technologies. Two people who participated in official events related to the financing plan this week said that the total amount of subsidies is expected to be about 20 billion euros. The people spoke on condition of anonymity because the discussions are private.
Chip supply disruptions during the COVID-2023 pandemic and rising tensions between the United States and China over the Taiwan Strait issue may also affect key sources of chip technology, prompting countries to strengthen local supply. The European Chip Act passed in 2030 aims to strengthen the EU's semiconductor ecosystem, with the goal of doubling market share to 20% of global production capacity by XNUMX.
However, the German chip industry is currently facing setbacks. Intel's 300 billion euro chip factory in Magdeburg was originally expected to become the largest project supported by the "European Chip Act" and receive up to 100 billion euros in subsidies. However, the company is in trouble US companies postponed their plans to build factories in September; in addition, leading silicon carbide (SiC) wafer factory Wolfspeed and Germany's ZF Friedrichshafen AG also withdrew their plans to establish a chip joint venture in western Germany.
The first round of German subsidies under the European Chip Act went to Intel and the joint venture between Infineon and TSMC in Dresden. The German Economy Ministry hopes that funds from the new proposal can subsidize a variety of areas, including wafer production to the assembly of microchips. Einhorn said the funded projects should contribute to the establishment of a strong and sustainable microelectronics ecosystem in Germany and Europe.
