Germany is clearly ready to take 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 vagaries. Explanations.
Germany prepares to invest
According to information from Bloombergthe government across the Rhine is expected to invest 2 billion euros soon. Quoted by our colleagues, Annika Einhorn, spokesperson for the German Ministry of the Economy, believes that this will make it possible to develop “modern production capacities which 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 grant applications.
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 polls will have to decide what action it takes on these plans.
The European Union wants to manufacture its electronic chips locally
In any case, this project does not come from 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 which 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 did everything to court industrialists. An Intel factory was also to be built in Magedeburg with 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 encourage manufacturers to continue moving forward.
What to remember:
- Germany prepares 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 electronic chip production
