Germany allocated €20 billion to enhance domestic microchip production
Investments by German authorities are being directed towards the advancement of semiconductor development
The development of local microchip production in Germany is set to receive a substantial boost through a €20 billion allocation by the government. This funding will benefit both domestic and foreign companies alike.
In a significant move, the government has already invested €10 billion in the construction of the US Intel plant located in Magdeburg. This plant, estimated to cost a total of €30 billion, will specialize in semiconductor production.
Additionally, German authorities have ambitious plans to allocate approximately €7 billion to Taiwanese microchip manufacturer TSMC, as well as German chipmaker Infineon and other entities. Furthermore, a separate €3 billion fund has been designated for upcoming projects of a similar nature.
This substantial investment underscores Germany’s determination to fully reinstate microchip manufacturing capabilities. This initiative comes as a response to the intricate challenges posed by geopolitical tensions and the uncertainty in global supply chains, stemming from the trade conflict between China and the United States.
