The Reichstag building in Berlin on the site of the German parliament. (Image source: Wiki Images)
Germany’s government has established a €20 billion fund with the purpose of boosting the country’s semiconductor industry. The fund is scheduled to be distributed by 2027 and aims to solidify Germany’s technology sector while ensuring a stable supply of crucial components for both domestic and international companies.
As of now, half of the fund (€10 billion) has already been allocated to the US giant Intel in the form of investments. Furthermore, there are ongoing plans to provide €5 billion in subsidies to Taiwan Semiconductor Manufacturing Company (TSMC) and €1 billion to Infineon.
Another significant beneficiary of this fund is a joint venture between the German automotive supplier ZF Friedrishshafen, and the US chipmaker, Wolfspeed, which is set to receive €750 million in state funds.
Approximately 75% of the total fund has already been allocated, and discussions are underway regarding the potential recipients of the remaining €3 billion. This includes companies like GlobalFoundries and Bosch, which already have a presence in the semiconductor industry in the city of Dresden.
It’s worth noting that the original intention of the €20 billion fund was to invest in the decarbonization of the economy. However, the focus has now shifted to supporting the technology sector, particularly the semiconductor industry.
Learn more at MoblieWorldLive & Reuters.
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