- EU endorses €5 billion financial assistance for German chip manufacturing facility
The EU Commission has greenlit a €5 billion financial assistance for constructing a microchip facility in Dresden, Germany. The Brussels body scrutinized the assistance under EU state aid regulations, which permit nations to foster specific sectors' growth. According to the Commission, this aid encourages construction: if not funded, the facility wouldn't materialize. Plans include investments of over €10 billion, with Germany's Federal Ministry of Economy and Technology contributing half.
Taiwanese chipmaker TSMC, in collaboration with Bosch, Infineon, and NXP Semiconductor, are planning to establish a new semiconductor plant in Dresden's northern district. The primary objective is to manufacture chips primarily for the automotive sector. The inauguration ceremony is set for today, with EU Commission President Ursula von der Leyen expected to grace the occasion.
Germany's Economics Minister Robert Habeck (Greens) expressed satisfaction with the EU Commission's speed and emphasized the need to sustain this momentum from a German standpoint: "We will keep the project's swift pace, and promptly authorize financing," he stated. The semiconductor factory is deemed a significant project under the European Chips Act, which seeks to institute advanced and environmentally friendly semiconductor production in Europe.
I'm not opposed to continuing this momentum in our semiconductor industry. However, I'm not going to commit financing without thorough assessment and alignment with our national priorities.
