Germany to boost chipmaking after automotive supply chain failure

January 26, 2021 //By Peter Clarke
Germany to boost chipmaking after automotive supply chain failure
The German government is planning to increase state aid in support of production of semiconductors in Germany and Europe, a spokeswoman for the German economic ministry is quoted saying by Reuters.

The comment was made in response to questions about a letter sent by the German economic ministry to Taiwan's government pressing for foundries to increase supplies of chips for automobile factories. The German government – in common with those of the US and Japan – has asked for Taiwan to pressure foundry TSMC to send chips for automobiles.

However, there appears to be little understanding of how long that can take – months not weeks – or why the supply chain has broken down under the pressure of the Covid-19 pandemic.

Related links and articles:

Germany asks TSMC to prioritize automotive chips

Volkswagen may claim damages over chip shortages

Germany pushes for more semiconductor independence from US, China

Europe will try to rebuild semiconductor capability using pandemic recovery funds

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