Germany Readies €20 Billion in Aid to Bolster Chip Output
- About 75% of the money is going to US’s Intel, Taiwan’s TSMC
- Funds are set to come from off-budget pot despite fiscal cuts
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Chancellor Olaf Scholz’s government plans to dole out €20 billion ($22 billion) to bolster semiconductor manufacturing in Germany in a push to shore up the country’s tech sector and secure supplies of critical components amid growing geopolitical tension.
The money is to be distributed to German and international companies by 2027 and will be drawn from the Climate and Transformation Fund, according to people involved in the negotiations.