{"id":367111,"date":"2024-11-29T12:23:41","date_gmt":"2024-11-29T12:23:41","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=news&#038;p=367111"},"modified":"2024-11-29T12:23:41","modified_gmt":"2024-11-29T12:23:41","slug":"germany-allocates-e2b-to-boost-local-chip-production","status":"publish","type":"news","link":"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production","title":{"rendered":"Germany Allocates \u20ac2B to Boost Local Chip Production"},"content":{"rendered":"<p><strong>On November 28, the German government unveiled plans to invest billions of euros in the semiconductor sector to help chipmakers advance production technologies beyond current standards.<\/strong><\/p>\n<p>The subsidies are estimated at around \u20ac2 billion ($2.11 billion), according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-11-28\/german-government-plans-about-2-billion-in-new-chip-subsidies\" target=\"_blank\">Bloomberg<\/a>, citing two attendees of a funding event. Economic Ministry spokesperson Annika Einhorn told Reuters that the funding will be needs-based and in the \u201clow single-digit billion range.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The German government is preparing about \u20ac2 billion in chip subsidies for companies to develop \u201cmodern production capacities that significantly exceed the current state of the art,\u201d Bloomberg reports, noting the move comes just months after Intel shelved plans for a \u20ac30 billion\u2026<\/p>\n<p>&mdash; Dan Nystedt (@dnystedt) <a href=\"https:\/\/twitter.com\/dnystedt\/status\/1862307046273818896?ref_src=twsrc%5Etfw\" target=\"_blank\">November 29, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The funds will support 10 to 15 projects in areas like raw wafer production and microchip assembly.<\/p>\n<p>Earlier this month, the ministry invited chip companies to submit requests for subsidies to strengthen the microelectronics ecosystem in Germany and Europe as part of the European Chips Act. However, with Germany\u2019s new government set to be chosen in February, unpredictability remains for applicants.<\/p>\n<h2><span id=\"challenges_in_europes_semiconductor_sector\">Challenges in Europe\u2019s Semiconductor Sector<\/span><\/h2>\n<p>The European Chips Act, adopted in 2023, aims to reduce the EU\u2019s reliance on Asian suppliers and increase its worldwide market share to 20% by 2030. Governments are investing in the chip industry to localize the production of crucial components, following pandemic-related challenges and the escalating US-China conflict over Taiwan, which threaten access to essential technology.<\/p>\n<p>The first round of subsidies through the Act went to Intel and a partnership between Infineon and TSMC in Dresden.<\/p>\n<p>In September, <a href=\"https:\/\/www.techopedia.com\/news\/us-gives-intel-reduced-7-9b-award-to-help-manufacturing-chips\">Intel<\/a> unexpectedly <a href=\"https:\/\/www.techopedia.com\/news\/intel-pauses-european-chip-plants-in-latest-cost-cutting-push\">paused<\/a> its \u20ac30 billion ($32 billion) project in Magdeburg, which had received \u20ac10 billion in EU subsidies. ZF Friedrichshafen AG and Wolfspeed also canceled their chip venture in Germany. In contrast, <a href=\"https:\/\/www.techopedia.com\/news\/tsmc-wins-6-6b-from-bidens-chips-act-ahead-of-office-reshuffle\">TSMC<\/a> began construction on a \u20ac10-billion factory in Dresden in August, its first in Europe, with plans for further expansion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On November 28, the German government unveiled plans to invest billions of euros in the semiconductor sector to help chipmakers advance production technologies beyond current standards. The subsidies are estimated at around \u20ac2 billion ($2.11 billion), according to Bloomberg, citing two attendees of a funding event. Economic Ministry spokesperson Annika Einhorn told Reuters that the [&hellip;]<\/p>\n","protected":false},"author":286990,"featured_media":367121,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"news-category":[2137],"class_list":["post-367111","news","type-news","status-publish","format-standard","has-post-thumbnail","hentry","news-category-artificial-intelligence"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Germany Allocates \u20ac2B to Boost Local Chip Production - Techopedia<\/title>\n<meta name=\"description\" content=\"On November 28, the German government unveiled plans to invest billions of euros in the semiconductor sector to help chipmakers advance production\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Germany Allocates \u20ac2B to Boost Local Chip Production\" \/>\n<meta property=\"og:description\" content=\"On November 28, the German government unveiled plans to invest billions of euros in the semiconductor sector to help chipmakers advance production\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production\" \/>\n<meta property=\"og:site_name\" content=\"Techopedia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/techopedia\/\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/germany-allocates-e2b-to-boost-local-chip-production.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"686\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@techopedia\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production\"},\"author\":{\"name\":\"Olesia Vlasova\",\"@id\":\"https:\/\/www.techopedia.com\/#\/schema\/person\/891f6d9c7690db4e1e11998ad86a57e2\"},\"headline\":\"Germany Allocates \u20ac2B to Boost Local Chip Production\",\"datePublished\":\"2024-11-29T12:23:41+00:00\",\"dateModified\":\"2024-11-29T12:23:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production\"},\"wordCount\":268,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.techopedia.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/11\/germany-allocates-e2b-to-boost-local-chip-production.jpg\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production#respond\"]}],\"copyrightYear\":\"2024\",\"copyrightHolder\":{\"@id\":\"https:\/\/www.techopedia.com\/#organization\"},\"articleSection\":\"\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production\",\"url\":\"https:\/\/www.techopedia.com\/news\/germany-allocates-e2b-to-boost-local-chip-production\",\"name\":\"Germany Allocates \u20ac2B to Boost Local Chip Production - 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