The German government will slash €3 billion in semiconductor subsidies over the coming years, redirecting the funds to domestic road and bridge maintenance. This reduction significantly shrinks the originally planned €15 billion chip support program for 2025–2028.
The move deals a major blow to Germany’s strategy to revitalize its semiconductor industry. It follows Intel’s cancellation of a €30 billion plant in Magdeburg and makes the EU’s goal of capturing 20% of global semiconductor production by 2030 increasingly distant—Europe’s current share stands at just 8.1% and is declining.
While Germany’s economics ministry emphasized that microelectronics remains a “key technology,” the reallocation is final. By contrast, China has allocated $142 billion for its chip sector, and the US CHIPS Act provides $52 billion in support.
ICgoodFind Summary: Germany’s subsidy cuts underscore Europe’s struggle for semiconductor autonomy, highlighting diverging policy support in the global chip race.
