German Government Plans Billions in New Chip Subsidies

According to Bloomberg News' report on Thursday, the German government is preparing to make new investments worth billions of euros in the country's semiconductor industry. The report, which cites two individuals attending an event related to funding plans, suggests that subsidies are expected to be around 2 billion euros (2.11 billion dollars). A spokesperson from the Ministry of Economy stated that they could not confirm this figure and told Reuters that the ministry plans to provide need-based funding in the "low single-digit billion range."

Following the European Chips Act (ECA), the ministry issued a call for chip companies to apply for new subsidies by mid-November for projects contributing to a strong and sustainable microelectronics ecosystem in Germany and Europe. The European Chips Act aims to reduce the continent's dependence on Asian suppliers for advanced semiconductors by subsidizing local development of large chip manufacturing facilities.