The German authorities have allocated 14 billion euros in subsidies

The German authorities have allocated 14 billion euros in subsidies for the development of the semiconductor industry

The shortage of semiconductor components has hit the German auto industry hard in recent years, so local authorities have decided to give significant subsidies to companies willing to set up semiconductor component production in Germany. The amount of targeted subsidies will reach 14 billion euros, according to the country’s Economy Minister Robert Habeck (Robert Habeck).

    Image source: Getty Images

Image source: Getty Images

Application for allocation of such subsidies official, acc ReutersHe did so at a business meeting in Hanover and added “That’s a lot of money”. Since the Federal Minister of Economics referred to the example of Intel’s initiative to build factories in Magdeburg in his speech, it can be assumed that this American manufacturer has every reason to claim part of the state subsidies. As already mentioned, the construction of plants in Magdeburg will cost Intel around 17 billion euros. CEO Patrick Gelsinger has made it clear that the company expects to recover up to 30% of its costs from government subsidies when building new plants outside the US.

Minister Robert Habeck explained that other projects such as Magdeburg are emerging in Germany, but local producers remain dependent on foreign suppliers. If we talk about the automotive industry, the most obvious dependency will be the supply of traction batteries from abroad. According to Habek, the country should “Develop your own strategy to ensure the supply of primary materials”.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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