Attempting to reduce reliance on Asian suppliers under the European Chips Act, Germany might invest $2.11 billion in advanced chip factories to ensure Europe’s competitiveness.
The German government is preparing to allocate billions of euros in subsidies to bolster the country’s semiconductor industry, according to a report from Bloomberg News. The total funding is expected to reach approximately 2 billion euros ($2.11 billion), based on information from two sources who reportedly attended a briefing on the government’s plans.
However, there has been no confirmation from Germany’s Economy Ministry about the specific figure, but it clarified that the ministry intends to offer funding on a need-based basis, with the total amount falling within the ‘low single-digit billion range.’
The ministry emphasised that the funding would support the creation of new manufacturing capacities that go well beyond the current technological standards. These modernised facilities are expected to ensure Europe’s competitiveness in the global semiconductor market.
In mid-November, the Economy Ministry invited semiconductor companies to apply for these new subsidies, which aim to enhance the microelectronics sector in Germany and across Europe.
This initiative follows the guidelines set by the European Chips Act (ECA), which seeks to reduce Europe’s reliance on Asian semiconductor suppliers by promoting the local development of advanced chip production facilities.
The European Chips Act, part of broader efforts to develop a more self-reliant and sustainable semiconductor ecosystem, is designed to stimulate the growth of Europe’s chip industry, thus reducing dependence on external suppliers for cutting-edge semiconductor technologies.
