Germany budgets for extra euro-billions in chip subsidies

The German government is planning to provide about an additional €2 billion in subsidies for chip manufacturing plants, according to reports by Bloomberg and Reuters.

The German economics ministry published a call for chip companies to apply for new subsidies in mid-November, Reuters said.

Germany is already committed to supporting the European subsidiary of foundry TSMC and is part of a €10 billion support package for Intel’s plans to build two fabs in Magdeburg.

However, ESMC is not intended to operate at the leading-edge but deliver chips for automotive and industrial applications made using 28/22nm and 16/12nm nodes using FinFET technology. And Intel’s European plans, already on a long time-line, could be under threat as the company is striving to contain financial losses.

The latest ministry call is looking for projects that contribute to a strong and sustainable microelectronics ecosystem in Germany and Europe, Reuters said.

The news agency quoted a ministry spokesperson saying it is planning to provid additional funding “in the low single-digit billion range.”