German Government Plans Billions of Euros in New Chip Subsidies, Bloomberg News Reports

The German government plans to invest billions of euros in the semiconductor industry. Subsidies are expected to be around 2 billion euros, as reported by Bloomberg News. The Economy Ministry aims to provide needs-based funding in the low single-digit billion range.

The subsidies are anticipated to total around 2 billion euros (US$2.11 billion), according to sources present at an event discussing the funding plans. However, a spokesperson from the Economy Ministry refrained from confirming this specific amount, stating that the ministry intends to offer needs-based funding "in the low single-digit billion range."

In mid-November, the ministry issued a call for chip companies to seek new subsidies for projects that will bolster a robust and sustainable microelectronics ecosystem in Germany and Europe, aligning with the European Chips Act (ECA). The ECA is designed to diminish Europe's reliance on Asian suppliers for cutting-edge semiconductors by supporting the local establishment of large chip factories.

The spokesperson from the Economy Ministry highlighted that the funding will support the development of state-of-the-art production capacities that surpass current standards significantly, as reported by Reuters.

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• The German government plans to invest billions of euros in the semiconductor industry.

• Subsidies are expected to be around 2 billion euros, as reported by Bloomberg News.

• The Economy Ministry aims to provide needs-based funding in the low single-digit billion range.

Source: REUTERS