Germany to invest billions in semiconductor sector

The German government is preparing substantial investments to strengthen its semiconductor industry, aiming to reduce reliance on Asian suppliers and foster local innovation. Subsidies are expected to reach approximately €2 billion, although the Economy Ministry has described the figure as ‘low single-digit billions’. Funding applications for projects contributing to a sustainable microelectronics ecosystem have been invited following the European Chips Act.

The European Chips Act, a broader EU initiative, promotes local semiconductor production by subsidising advanced chip factories. Germany‘s funding prioritises modern production capacities that surpass current technological standards. Officials hope the move will bolster both national and European resilience in semiconductor manufacturing.

Efforts reflect a growing urgency to diversify the global semiconductor supply chain. Germany’s strategic push aligns with wider EU goals to establish a competitive, sustainable microelectronics industry capable of reducing dependence on foreign suppliers.