Germany has €14 billion for chipmakers, says minister
Germany’s Economy Minister Robert Habeck says his country has €14 billion (about US$14.8 billion) to support chipmakers, according to Reuters.
Habeck added that there would more examples like Intel setting up in Magdeburg to come.
Leading chipmaker Intel Corp. has agreed to build two fabs at a cost of €17 billion in Magdeburg, Eastern Germany, with state support (see Germany plans to pay €5 billion towards Magdeburg fabs).
Attracting more chipmakers is important because a global and long-running chip supply shortage, affecting everything from smartphones to automobiles, has become a massive problem for the German economy, Reuters quoted Habeck saying at gathering of family-owned businesses in Hanover.
Who else?
It is not clear whether the €14 billion is additional to money already promised to Intel. Even if it is additional, Intel would likely wish to tap into this money as well.
While announcing the plan to build two fabs in Magdeburg, Pat Gelsinger, CEO of Intel, said more money was required to make the “project competitive.” Previously Intel had indicated it is looking for a €10 billion support package (see Intel seeks $10 billion subsidy for ‘EuroFab’).
Meanwhile the European Commission has been laying out plans to encourage chip manufacturing in Europe as a part of a strategic plan to raise Europe’s share of the global chip market (see European Chips Act could include powers for EU control).
Habeck said there would be other examples like Magdeburg, without going into details.
It is expected that Globalfoundries and Bosch – already present in Dresden, Germany – will be supported in expanding their operations. However, these companies do not operate at the leading-edge in terms of miniaturization. The European Commission is believed to have courted the world’s two leading foundries Samsung and TSMC for inward investment without success so far.
Related links and articles:
Germany plans to pay €5 billion towards Magdeburg fabs
Opinion: Full-fat finance is missing from Intel’s European plan
Intel confirms German fabs as part of €80bn European investment
European Chips Act could include powers for EU control
Report: Intel selects Magdeburg for German wafer fab
Intel set to buy foundry Tower for $5.4 billion
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