Germany invests huge sums in its “made in Europe” chip factory

© Shutterstock/Juan Garcia Hinojosa

Germany is clearly ready to get out its checkbook to ensure the production of electronic chips in the country. But the development of these technologies has already suffered several setbacks in the past and is subject to political hazards. Explanations.

Germany is preparing to invest

According to information from Bloomberg, the German government should invest 2 billion euros soon. Quoted by our colleagues, Annika Einhorn, spokesperson for the German Ministry of Economy, believes that this will make it possible to develop “modern production capacities that far exceed the current state of technology”.

However, the authorities refuse to reveal the exact amount that will be allocated to these projects. A spokesperson specifies, however, that it will be in the order of ” a few billion euros “. Manufacturers have also been invited since the beginning of the month to submit their requests for subsidies.

These initiatives are nevertheless subject to a real limit. Indeed, legislative elections should be held early next year in Germany. The new government that emerges from the ballot boxes will have to decide how to follow up on these plans.

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The European Union wants to manufacture its electronic chips locally

In any case, this project did not come out of nowhere, but it corresponds to an awareness born during the Covid crisis. Europeans and Americans have measured their dependence on Asian suppliers of electronic chips, particularly in Taiwan. The EU has therefore adopted a law that aims to strengthen the production ecosystem on the continent and wants 20% of the chips consumed to be produced in its member states by 2030.

In the process, countries like Germany have done everything to court manufacturers. An Intel factory was also to be built in Magedeburg for an estimated value of 30 billion euros.

This project should have received no less than 10 billion euros in public subsidies. In difficulty, the American company finally decided to postpone its plans. Therefore, the government has no choice but to relaunch the manufacturers to continue moving forward.

Key takeaways:

• Germany is preparing to invest 2 billion euros to support semiconductor production in the country
• This decision remains subject to political uncertainties (legislative elections in early 2025)
• The entire European Union is trying to relocate the production of electronic chips

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