Germany wants to attract chip makers for local production and has volunteered EUR 14 billion as state assistance

Germany wants to attract chip makers for local production and has volunteered EUR 14 billion as stat ...

According to Germany''s government, the company hopes to attract chipmakers by investing 14 billion (roughly Rs. 1,13,132 crore) on Thursday, adding that the lack of cameras used in everything from smartphones to cars was a huge concern.

Car manufacturers, healthcare providers, telecoms operators, and others have been devastated by a worldwide chip shortage and supply chain bloats.

"It''s a lot of money," Habeck told a gathering of family businesses in Hanover.

Due to an increase in demand, the European Commission conceived intentions to stimulate chip manufacturing in the European Union, along with new legislation to facilitate state-aide measures.

In March, US chipmaker Intel announced that it would design the German town of Magdeburg as the site for a massive new EUR 17 billion (roughly Rs. 1,37,358 crore) chipmaking complex. At the time, government officials said the state was assisting the project with billions of euros.

Habeck said there would be additional examples like Magdeburg, despite the fact that companies in Germany will remain dependent on other manufacturers for components such as batteries.

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"We must develop our own strategy to ensure primary materials," says the author.

The US chipmaker is investing in Europe in over half a dozen countries, including expanding its existing manufacturing in Ireland, establishing a design and research facility in France, and building a packaging and assembly facility in Italy.

The initial expenditure will be worth EUR 33 billion (roughly Rs. 2,76,294 crore) and EUR 17 billion (roughly Rs. 1,42,337 crore) in Germany, where the automobile industry is likely to be a leading consumer for cutting-edge chips that could be able to use techniques as small as 2-nanometers.

Volkswagen, a German automobile manufacturer, highlighted the dangers of chip shortages on Tuesday, claiming that it sold 2 million less cars than anticipated last year due to the issue.

In 2022, Thomson Reuters will be able to provide a breakdown.