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Germany plans to spend 14 billion euros to attract more chipmakers

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Update time : 2022-05-07 17:16:10
       On May 6, German Economy Minister Robert Habeck said on Thursday that the German government hopes to use 14 billion euros (about 14.71 billion U.S. dollars) of funds to attract more chip manufacturers to invest in chip manufacturing locally. 
        Global chip shortages and supply chain issues are taking a toll on automakers, healthcare providers, telecom operators, and more. Harbeck added that the lack of chips in everything from smartphones to cars is a big problem these days. "It's a lot of money," Habeck said of the investment.
        As demand for chips surged, the European Commission in February drew up plans to encourage chip anufacturing projects in the EU and proposed new legislation to ease state aid rules for chip factories. In March of this year, the US chip maker Intel announced that it had chosen to invest 17 billion euros in the construction of a chip manufacturing base in the town of Magdeburg, Germany. At the time, the German government spent billions of euros to promote the project, the sources said. Although German companies will still rely on companies elsewhere for components such as batteries, there will be more examples like Intel's investment in the town of Magdeburg, Habeck said. "We have to develop our own strategy to secure the supply of raw materials," he said.
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