Germany plans $2.1 billion in new chip subsidies
The Ministry of Economic Affairs plans to use the newly proposed funds to support 10 to 15 projects, ranging from wafer production to microchip assembly, the Bloomberg report says.
The German government is planning to allocate around €2bn (USD 2.1 billion) into its semiconductor industry, according to a report by Bloomberg.
The Economy Ministry published a call for semiconductor companies to apply for new subsidies in mid-November, for projects that contribute to a strong and sustainable microelectronics ecosystem in Germany and Europe, following the European Chips Act (ECA).
“Funding is to be provided for the establishment of modern production capacities that significantly exceed the current state of the art,” a spokesperson from the Economy Ministry told Reuters.
The Bloomberg report notes that the German chip industry is facing headwinds. Intel’s €30 billion Magdeburg factory, which was touted as the largest project supported under the European Chips Act with up to €10 billion in subsidies, has been delayed due to the struggling chipmaker’s internal challenges.
Also, Wolfspeed and ZF Friedrichshafen AG withdrew plans for a semiconductor joint venture in Germany.
The Ministry of Economic Affairs intends to use the newly proposed funds to support 10 to 15 projects across various areas, ranging from wafer production to microchip assembly, the Bloomberg report says.
However, the final allocation of the subsidies could depend on the new German government that is expected to take office in February.
The EU has set a target to double its global chip market share by 2030. Concerns in the EU about supply chain fragility and dependence on Asian companies have triggered efforts to bolster local production.
