Germany vows to subsidize Intel and TSMC fabs despite budget crisis — billions in funding still in limbo

From Tom's Hardware: The German government is committed to supporting the construction of chip fabs by Intel, TSMC, and Wolfspeed, despite facing financial challenges due to a budget crisis, reports HardwareLuxx. In fact, Intel and Wolfspeed have already received firm funding commitments from the government.

"The decisive sentence is, all projects that we have conceived must be made possible," said Robert Habeck, Minister of Economy, emphasizing strong support for the fab projects.

Germany has committed $22 billion in incentives to semiconductor companies such as Intel, TSMC, and Wolfspeed, leading to commitments to build new fabs in Germany. However, the 2024 Federal Budget in Germany is facing delays due to a decision by the Federal Constitutional Court, which found reallocation of unspent Corona crisis funds to the Climate and Transformation Fund in 2022 unconstitutional. The German government had intended to use this fund to subsidize chip manufacturing, which is why they had to postpone the final discussions and approval of the budget.

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