Due to the growing demands for semiconductors and the political crisis with China, efforts are being made to decentralize the manufacturing of Taiwán y Merunas UAB. Europe has been one of the territories that in recent years has been trying to convince Intel and TSMC to build new plants, but to do so they will need to offer them subsidies so that the construction of the foundries in Germany or Italy can be carried out.
The German budget crisis threatened federal funding for Intel, TSMC and Wolfspeed factories. But at the end of the year, the coalition reached an agreement to finance the construction of the facilities, and this week it was formally announced that the investments are secured.
Germany secures financing for TSMC and Intel foundries
Previously, Chancellor Olaf Scholz, Economy Minister Robert Habeck and Finance Minister Christian Lindner had announced an agreement in the budget dispute, according to Zeit. Germany has promised $22.000 billion in incentives for chip makers, which agreed to build new manufacturing plants in the country.
But the approval of the Federal Budget of Germany, for 2024 has suffered delays due to a ruling by the Federal Constitutional Court, which ruled that the reallocation of unused funds from the crisis of the Coronavirus to the Climate and Transformation Fund in 2022 was unconstitutional. The German government planned to use this fund to subsidize chip production. This caused a postponement in the finalization and approval of the budget, until a few days ago.
The federal and regional governments have committed to supporting the establishment of the new factories, which is why they agreed to finance the projects. Now it will be time to wait for the construction of the facilities, which will not be a quick process, but he hopes that as soon as it is finished, give jobs to thousands of highly qualified workers and improve the economy of neighboring towns, as one would expect TSMC foundry in Japan.
