Germany to tap climate fund for €20bn to subsidise chip projects

Author: EIS Release Date: Aug 3, 2023

Germany is to allocate €20 billion over the next four years  from its €177.5 billion Climate and Transformation Fund budget to subsidise chip production, reports Bloomberg.

 

Intel is to get €10 billion – for its €20 billion two fab site at Magdeburg.

 

TSMC is to get €5 billion for a €10 billion fab in Dresden, yet to be agreed on.

 

Infineon is to get €1 billion for a €5 billion fab in Dresden.

 

 

 

 

ZF (Zahnradfabrik Friedrichshafen) Group and Wolfspeed are negotiating to get about €750 million for a €3 billion SiC chip plant in Saarland.

 

Which leaves about €3 billion which could be going to Bosch and GloFo which both have fab sites in Dresden.

 

The Climate and Transformation fund was set up in July 2022 to fund the decarbonisation of the German economy but has since been expanded to cover other areas which could be threatened with budget cuts by finance minister  Christian Lindner.