The German government is currently preparing new investments in the country’s semiconductor industry two months after Intel Corp. shelved intentions related to the construction of a chip manufacturing plant worth 30 billion euros ($32 billion) in Magdeburg.
In a statement released on Thursday, November 28, Annika Einhorn, a spokesperson from the German economic ministry, noted that funding will be provided to companies that are elaborating and making microcircuits to develop modern production capacities that significantly exceed the present state of the art.
It is expected that the total amount of subsidies planned by the authorities of the specified country will amount to about $2 billion. The relevant information was released by the media with reference to insiders who attended an official event dedicated to funding plans this week. The interlocutors of the journalists used the right of anonymity since the discussion of investment intentions took place in a confidential mode.
A spokesperson for the German ministry of economy commenting for the media on the sum of financial injections into the semiconductor industry of the country stated that the corresponding indicator would be in the low single-digit billion euro range, without going into details.
It is worth noting that in November, the mentioned ministry published a call for companies developing and manufacturing chips to apply for new subsidies. However, in this case, there is a significant uncertainty factor due to the political situation in Germany. Next February, elections will be an election for the country’s new parliament, which is likely to form a new budget. In this context, there is a risk that subsidies for the semiconductor industry will be revised downwards or abolished altogether. At the same time, the realization of the corresponding probability is not inevitable.
As we have reported earlier, US Finalizes Chips Manufacturing Award for Intel.
