It is reported that Germany plans to invest 20 billion euros to boost the semiconductor industry, benefiting Intel and TSMC.
Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com, July 24 (Xinhua) according to a new report from Bloomberg, the German government plans to allocate 20 billion euros (CTOnews.com Note: currently about 160.2 billion yuan) to increase the country's semiconductor production capacity. The move aims to strengthen the domestic technology industry while ensuring a stable supply of key components in the context of geopolitical upheaval.
About 75% of the money will be used to fund companies such as Intel and TSMC to build chip manufacturing plants in Germany, Bloomberg reported.
Half of the money, or 10 billion euros, has been allocated to Intel to build a new production base near Magdeburg in eastern Germany, the report said. The German government is also in final negotiations with TSMC to invest in a plant in Dresden to produce microcontrollers needed by German carmakers. The German government is expected to provide 50 per cent of the subsidy for the project, or about 5 billion euros.
In addition, about 1 billion euros will be used to support Infineon, a local semiconductor giant, to build a new chip factory in Dresden, subsidizing 20 per cent of the total investment. In addition, ZF Friedrichshafen AG, a German auto parts supplier, and Wolfspeed, an American chipmaker, are also expected to receive government funding to build a silicon carbide chip factory in Salland, near the French border. The joint venture seeks a cost subsidy of about 25 per cent, equivalent to 750 million euros.
The funding scheme, which will be implemented by 2027, is interesting to note that the money comes from the Climate and Transformation Fund, which was originally set up to finance Germany's transition to a carbon-neutral economy, but the government later expanded its investment. covers economic projects for sustainable development. Earlier, German economy Minister Robert Harbeck proposed to use the Economic Stability 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 be the most active subsidy provider to chipmakers in Europe.
