Germany earmarks 20 billion euros for chip industry in coming years

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The money will be drawn from the Climate and Transformation Fund from 2024 onwards.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/

BERLIN, July 25 - Germany plans to invest around 20 billion euros in the semiconductor industry in the coming years, the economy ministry said on Tuesday, amid growing alarm over supply chain fragility and dependence on South Korea and Taiwan for chips. The money will be drawn from the Climate and Transformation Fund from 2024 onwards, the ministry said, adding that it could only give funding for individual projects after European Commission approval.expressed interest in investing in a semiconductor production facility in Germany and that the ministry was in close contact with the company over an investment decision.

Last month, Berlin agreed subsidies worth nearly 10 billion euros with the U.S. chipmaker Intel to build two facilities in the eastern city of Magdeburg.

 

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