It is reported that Germany plans to invest 20 billion euros to help the semiconductor industry, Intel and TSMC
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Update time : 2023-07-28 12:46:29
On July 24th, according to a new Bloomberg report, the German government plans to allocate 20 billion euros (note: currently about 160.20 billion yuan) to increase the country's semiconductor production capacity. This move aims to strengthen the domestic technology industry, while ensuring a stable supply of key components in the context of geopolitical turmoil.
According to Bloomberg, about 75 percent of the funds will be used to fund Intel, TSMC and other companies to build chip manufacturing plants in Germany. Half of the funds, or €10 billion, have been allocated to Intel to build a new production site near Magdeburg in eastern Germany, the report said. The German government is also in final talks with TSMC to invest in a plant in Dresden to make various microcontrollers needed by German automakers. The German government is expected to provide a 50% subsidy for the project, about €5 billion. In addition, about 1 billion euros will be used to support German semiconductor giant Infineon to build a new chip factory in Dresden with a subsidy of 20%25 of the total investment. Separately, German auto parts supplier ZF Friedrichshafen AG and American chipmaker Wolfspeed are also expected to receive government funding to build a silicon carbide chip factory in Saarland, near the French border. The joint venture project seeks a cost subsidy of about 25%25, equivalent to 750 million euros. The funding program will be implemented until 2027, and it is interesting that the funds come from the Climate and Transformation Fund, which was originally set up to finance Germany's transition to a carbon-neutral economy, but the government has since expanded its investment to cover sustainable economic projects. Previously, German Economy Minister Robert Habeck had proposed using the Economic Stabilization Fund to provide state aid to chipmakers. At present, the German government has not confirmed or denied its plan. If the news is true, Germany will become the most active country in Europe to subsidize chipmakers.
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