Germany is preparing investments in the national semiconductor industry. This was reported by Bloomberg.
Annika Einhorn, a spokesperson for the German Ministry of Economy, said that the government is investing several billion euros in the development of "modern production facilities that are far beyond the current technical level." Although the exact amount of funding for chipmakers has not been disclosed, participants of the special event say that it is about 2 billion euros.
The German Ministry of Economy plans to use the funds for 10-15 projects in various industries, including raw wafer production and microchip assembly. Einhorn says that thanks to the funded projects, Germany can gain a strong and sustainable microelectronics ecosystem.
The German government announced plans to invest after Intel suspended a €30 billion chip fab project. In September 2024, the company explained this decision by the need to compensate for financial losses.
Germany is not the only country investing in the domestic semiconductor industry. Different governments are trying to establish domestic chip production due to tensions between the US and China over Taiwan, where TSMC, the world's largest semiconductor manufacturer, has its factories.
In the United States, the Biden administration launched the CHIPS Act in 2022, which will allocate $39 billion for the development of the semiconductor industry. Intel, in particular, will receive $7.9 billion under this initiative. Europe has also introduced a chip law in 2023, which aims to strengthen the semiconductor system and double its market share to 20% of global production capacity by 2030.