BERLIN (Dow Jones)–Federal Economics Minister Robert Habeck (Greens) has defended state funding for semiconductor and chip production facilities in Germany. At an event with representatives from the federal states and industry, he emphasized the importance of microelectronics as a contribution to security of supply and as a key to transformation in Germany and Europe. He referred to projects that are supported by the state as part of an important joint European project (IPCEI) on microelectronics. As part of the IPCEI Microelectronics and Communication Technologies, 31 German microelectronics projects from eleven federal states are to be supported with a total of around 4 billion euros.
Habeck emphasized that this would support complex and investment-intensive development and innovation projects that would strengthen the microelectronics value chain and expand manufacturing in Germany. “Germany makes a crucial contribution to Europe’s security of supply with semiconductors and chips. Numerous regions in Germany benefit from the funding, strengthen their competitiveness and create future-oriented jobs,” said Habeck, according to a press release.
As a key technology, microelectronics plays a central role in climate protection, energy efficiency and economic growth. “Independent access to microelectronic components is more important than ever for the transformation of the economy and for the security of supply in Germany and Europe,” said Habeck.
Companies want to invest 10 billion euros
In June, the European Commission approved the IPCEI Microelectronics and Communication Technologies, paving the way for funding for around 100 European projects. For the projects planned in Germany, 70 percent of the funding will be provided by federal funds and 30 percent by the eleven participating federal states in which the companies are implementing their projects. For their part, according to the Ministry of Economic Affairs, the companies are investing more than 10 billion euros in, among other things, production facilities, manufacturing facilities and the development of new types of semiconductor chips.
The ministry emphasized that microelectronics has “enormous economic importance” in all industrialized nations. The digital and green transformation of Germany as a business location cannot be achieved without semiconductors. Industrial production, data centers and modern communication technologies only work if microelectronics control the relevant processes and transmit and process data.
Saxony’s Prime Minister Michael Kretschmer (CDU) emphasized that microelectronics is the key to successful and sustainable industrial growth in Germany and Europe. Baden-Württemberg’s Prime Minister Winfried Kretschmann (Greens) called for more speed in the future in order to be able to keep up with the rapid pace of innovation and international competition. “The federal government, the states and the EU must therefore pull together when it comes to microelectronics. This is the only way we can position ourselves confidently and as independently as possible from imports and lead the way in this future technology,” demanded Kretschmann according to the press release.
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(END) Dow Jones Newswires
September 18, 2023 08:25 ET (12:25 GMT)