The German government is preparing billions of euros of new investments into the country’s semiconductor industry, Bloomberg News reported on Thursday.
The subsidies are expected to be about 2 billion euros ($2.11 billion), Bloomberg reported, citing two people who attended an event about the funding plans.
A spokesperson from the Economy Ministry said he could not confirm this figure and told Reuters the ministry plans to provide needs-based funding “in the low single-digit billion range.”
The ministry published a call for chips 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).
The
European Chips Act aims to reduce the continent’s dependence on Asian suppliers for advanced semiconductors by subsidising the local development of large chip factories.
“Funding is to be provided for the establishment of modern production capacities that significantly exceed the current state of the art,” the spokesperson from the Economy Ministry told Reuters.
Dunstan Power, Director of ByteSnap Design, commented:
“This EUR 2 billion investment from the German government is a step in the right direction towards bolstering Europe’s semiconductor industry. We must be realistic about the scale of the challenge, however. The investment is relatively small against the value of semiconductor companies and the cost of constructing wafer fabs. Nevertheless, it’s encouraging to see such a commitment to reducing our reliance on Asian chip manufacturers and ensuring a more robust supply chain.
“As an electronics design consultancy, we’ve seen first-hand how chip shortages can impact product development timelines in recent years. This latest move could eventually lead to more predictable lead times and potentially foster innovation in chip design and manufacturing right here in Europe. It’s a promising development for companies like ByteSnap and our clients who benefit on a steady supply of advanced microprocessors.”
