Germany is determined to build up its chipmaking capacity. To achieve this, the country’s Ministry of Economy has announced it will offer €14bn (about £12bn) in financial support of the industry.
The semiconductor shortage and the supply chain disruptions caused by the rise of demand in the wake of the pandemic, have created havoc in many industries that rely on this technology, including carmakers, healthcare providers and telecom operators. In this context, large corporations like Apple and Ford were forced to halt production processes, facing billions of dollars in losses.
The chip shortage is expected to last until at least 2024, according to Intel CEO Pat Gelsinger.
To address this challenge, the European Commission has set out plans to encourage chip manufacturing in Europe through the European Chips Act, which will enable €15bn (approximately £13bn) in additional public and private investments until 2030.
The announcement was followed by a £68bn...