Germany is the world’s largest automotive electronics market, and the automotive industry is expected to drive demand for chips in Europe. In order to avoid falling into the dilemma of chip shortages again, even the automobile industry is now investing in its own production capacity.
Bosch set up a fab in Dresden in 2021, and ZF and Wolfspeed announced in February this year that they would build a fab in Saarbon, western Germany. Infineon has also significantly expanded its production capacity, and a new plant with an investment of 5 billion euros has started construction in Dresden this year.
In addition to auto parts and chip manufacturers, wafer foundries are also being deployed in Germany. TSMC may decide to build a factory in Dresden within a few weeks.
The German government is also getting involved. The Economy Ministry said on July 25 that the government is preparing subsidies worth around 20 billion euros ($22 billion) to support the development of local semiconductor production in the coming years.
This investment is a major vote of confidence in Germany’s semiconductor industry. It is clear that the government sees semiconductors as a strategic asset, and it is willing to invest heavily to ensure that Germany remains a global leader in this field.
This is exciting news for the semiconductor industry in Germany. The investment from the government will help to attract new companies to the country and to expand the capacity of existing companies. This will create jobs and boost the economy.
It is also good news for the automotive industry. The investment in semiconductors will help to ensure that the industry has the chips it needs to produce cars. This will help to prevent future chip shortages and keep the automotive industry running smoothly.
The development of Germany as a global semiconductor hub is a positive development for the country and for the world. It will help to ensure that the world has a secure supply of chips, and it will boost the economies of Germany and other countries.
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