Germany to invest billions in chip manufacturing

The German government is preparing to invest billions of euros into the country’s semiconductor sector.

The subsidies are anticipated to total around 2 billion euros ($2.11 billion), although a spokesperson from the Economy Ministry could not confirm this amount, Caliber.Az reports, citing the foreign media.

The spokesperson stated that the ministry plans to offer funding based on need, with the total likely to be in the low single-digit billions. In mid-November, the ministry issued a call for chip companies to apply for these new subsidies, aimed at projects that will strengthen and sustain the microelectronics ecosystem in Germany and Europe, in line with the European Chips Act (ECA).

The European Chips Act seeks to decrease Europe's reliance on Asian suppliers for advanced semiconductors by supporting the local development of large-scale chip manufacturing plants. A spokesperson from the Economy Ministry explained that funding will be allocated for the creation of modern production facilities that surpass the current technological standards.

By Naila Huseynova