Federal Ministry of Economics - Traffic lights stick to billions in subsidies for chip factories
Despite the budget crisis, the traffic light government is sticking to billions in subsidies for industrial projects in eastern Germany, including the Intel chip factories near Magdeburg and TSMC near Dresden. This was confirmed to the German Press Agency by Michael Kellner, Parliamentary State Secretary in the Federal Ministry of Economics.
"The traffic light agreement is good for eastern Germany," said Kellner. "The investments for the transformation projects are secured. We are securing our future economic strength with these funds. Our entire country will benefit from this, people and SMEs alike." Previously, Federal Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) had announced an agreement in the budget dispute.
The Federal Government Commissioner for Eastern Europe, Carsten Schneider, also praised the agreement. "It is an important signal that investments for the semiconductor industry in eastern Germany have been secured," the SPD politician told dpa. "Both Intel in Magdeburg and TSMC in Dresden can rely on the Chancellor's assurances."
The US manufacturer Intel is planning to build a new chip factory near Magdeburg. The investment amounts to around 30 billion euros, and the state intends to contribute around ten billion euros. The Taiwanese company TSMC is planning a semiconductor factory in Dresden with an investment volume of more than ten billion euros. The state subsidy here is expected to be around five billion euros.
Thousands of jobs are to be created in both cases. At the same time, the German government is hoping for more strategic independence if computer chips are manufactured in Europe instead of being imported from Asia.
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- Despite the challenging budget crisis, the coalition government, often referred to as the 'traffic light' government, remains committed to offering substantial billions in subsidies for industrial projects in eastern Germany, such as Intel's chip factory near Magdeburg and TSMC's in Dresden.
- The Federal Minister of Economics' Parliamentary State Secretary, Michael Kellner, confirmed to the German Press Agency that the 'traffic light agreement' benefits eastern Germany, securing investments for transformation projects and strengthening the nation's economic future.
- SPD politician Carsten Schneider, the Federal Government Commissioner for Eastern Europe, praised the agreement, highlighting it as an essential signal that investments for the semiconductor industry in eastern Germany, including Intel and TSMC, are guaranteed.
- Intel, a US-based technology giant, aims to establish a new chip factory near Magdeburg, with an estimated investment of around 30 billion euros, and state support totalling approximately 10 billion euros.
- TSMC, a prominent Taiwanese semiconductor company, plans to construct a semiconductor factory in Dresden with an investment of more than 10 billion euros, with around 5 billion euros expected in federal government subsidies.
- With thousands of new job opportunities anticipated in both projects, the German government also hopes for enhanced strategic independence by manufacturing computer chips domestically rather than relying on imports from Asia.
- Businesses, households, and the broader German economy would all benefit from these investments, according to Federal Minister of Economics Michael Kellner, ensuring a brighter economic future for all.
- Lastly, energy sector experts and politicians like Michael Kellner and Carsten Schneider emphasize the importance of providing financial support to critical industries in eastern Germany, such as the semiconductor industry, for the country's long-term growth and stability.
- The magazine Stern reported that the coalition government, consisting of the SPD, Greens, and FDP, continues to back the subsidy for chip factories in eastern Germany, led by projects like Intel and TSMC, despite ongoing budget constraints, ensuring the nation's competitive edge in the tech industry.
Source: www.stern.de
