Germany offers “14 billion euros of reason” for the semiconductor industry to settle

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Germanythe government wants to attract chip policymakers with 14 billion euros ($14.71 billion) in support, economy minister Robert Habeck said Thursday, adding that the lack of semiconductors used in everything from smartphones to cars was a huge problem.

A global chip shortage and supply chain bottlenecks have created havoc for automakers, healthcare providers, telecom operators and others.

“That’s a lot of money,” Habeck said at a gathering of family businesses in Hanover.

In February, the European Commission presented plans to encourage the manufacture of chips in the European Union due to a boom in demand, with new legislation proposed to ease state aid rules for chip factories.

In March, in the United States chip maker Intel Corporation announced that it had chosen the German city of Magdeburg as the site of a massive new €17 billion chip-making complex. Government sources said at the time that the state was promoting the project with billions of euros in funds.

Habeck said there would be other examples like Magdeburg even though companies in Germany would remain dependent on producers elsewhere for components like batteries.

“We have to develop our own strategy to secure raw materials,” he said.

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