Germany is redirecting €3B from its semiconductor subsidy program to repair roads and bridges

Fuente Cryptopolitan

Germany has redirected funds meant for its semiconductor industry to its infrastructure. The country’s semiconductor sector, which is already plagued by delays, uncertainty, and international competition, is now facing another setback as the government diverts funds away from the sector.

Germany’s goal to reclaim a significant role in the global semiconductor industry has suffered a major setback after the government announced plans to cut €3B ($3.5B) from its chip subsidy budget. 

The funds, which were originally designated to boost the production of domestic microelectronics, will instead be used to repair the country’s deteriorating streets and bridges.

Germany redirects funds to infrastructure  

“We are making difficult but responsible choices,” Germany’s Vice Chancellor Lars Klingbeil said during a press conference to announce the funds reallocation on Thursday. He added that the “necessary measure” addresses aging infrastructure and fiscal challenges that are “crucial for both economic productivity and public safety.”

The German government earlier announced that it would channel €15B ($17.4B) in subsidies toward semiconductor manufacturing between 2025 and 2028. The funds were central to Berlin’s strategy for reducing its dependence on Asian chip suppliers and strengthening the European Union’s position in the global tech supply chain.

Beyond this reallocation, Germany’s semiconductor push has already faced multiple obstacles. Intel Corp. earlier this year scrapped plans for a $34.7B chip plant in Magdeburg over cost pressures and uncertain funding conditions. 

With Germany going back on its decision, industry concerns about Germany’s ability to compete globally in a sector dominated by Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics, and Intel have returned.

Fund reallocation was unpopular among industry stakeholders

The German government’s “difficult but responsible choices” have quickly drawn criticism from industry groups and stakeholders, who warned that the funding cuts could have lasting repercussions on industrial competitiveness and strategic autonomy.

“This would send a disastrous signal not only for the economic viability of our country, but also for its strategic capacity to act,” Sarah Bäumchen, the managing director of the ZVEI electrical and digital industry association, said. She emphasized that microelectronics is a “key technology vital for survival” and essential to the country’s industrial future.

Germany approved around $2.3B in semiconductor subsidies last year, but none of the funds have yet been disbursed. The Ministry for Economic Affairs previously admitted it was caught off guard by the number of funding applications, which exceeded initial expectations by nearly threefold.

Frank Bösenberg, head of the Silicon Saxony industry group, said he understood the government’s financial constraints but stressed the need for “planning security and speed in the implementation of corresponding programs.” He added that uncertainty in policy and funding discourages private investment, particularly in capital-intensive sectors like chip making.

A spokesperson for Infineon Technologies AG, one of Germany’s largest semiconductor firms, clarified that ongoing and approved projects would not be affected by the cuts. 

Germany has been struggling to balance post-pandemic recovery spending with its constitutional “debt brake,” which is a law that limits public borrowing. 

The EU launched its Chips Act with the goal of doubling its global market share in chip manufacturing from 8% to 20% by 2030. But according to a joint report by ZVEI and Strategy&, Europe’s share had already fallen to 8.1% in 2024, and is projected to decline further without substantial new investment.

Meanwhile, global rivals are accelerating their chip strategies. China has dedicated $142B in public funding to boost domestic production, and the United States has allocated $52B through its own Chips Act. These massive investments have attracted private capital and manufacturing projects, creating an increasingly uneven playing field for European firms.

Get up to $30,050 in trading rewards when you join Bybit today

Descargo de responsabilidad: Sólo con fines informativos. Rentabilidades pasadas no son indicativas de resultados futuros.
placeholder
Principales Criptos Ganadoras: Zcash y Mantle brillan ante la turbulencia del mercado, Pudgy Penguins ocupa el tercer lugarZcash (ZEC) y Mantle (MNT) registran ganancias de dos dígitos en las últimas 24 horas, superando al mercado de criptomonedas en general. Pudgy Penguins (PENGU) ocupa el tercer lugar entre las criptomonedas de mejor rendimiento en el mismo período, con un aumento de casi el 7% el miércoles.
Autor  FXStreet
El dia de ayer 03: 27
Zcash (ZEC) y Mantle (MNT) registran ganancias de dos dígitos en las últimas 24 horas, superando al mercado de criptomonedas en general. Pudgy Penguins (PENGU) ocupa el tercer lugar entre las criptomonedas de mejor rendimiento en el mismo período, con un aumento de casi el 7% el miércoles.
placeholder
Yen japonés avanza ligeramente pero enfrenta vientos en contra por las apuestas de subida de tasas del BoJ retrasadasEl Yen japonés (JPY) avanza ligeramente durante la sesión asiática del jueves y se aleja de un mínimo de casi ocho meses, alcanzado frente a su contraparte americana el día anterior
Autor  FXStreet
El dia de ayer 03: 39
El Yen japonés (JPY) avanza ligeramente durante la sesión asiática del jueves y se aleja de un mínimo de casi ocho meses, alcanzado frente a su contraparte americana el día anterior
placeholder
El Oro se desploma por debajo de 4.000$ mientras los operadores toman ganancias y el Dólar estadounidense se fortaleceEl precio del Oro retrocedió durante la sesión norteamericana del jueves tras alcanzar un máximo histórico de 4.058$, cayendo por debajo de 4.000$ mientras el Dólar registra sólidas ganancias. El XAU/USD cotiza en 3.978$, con una caída del 1.5%
Autor  FXStreet
2 hace una horas
El precio del Oro retrocedió durante la sesión norteamericana del jueves tras alcanzar un máximo histórico de 4.058$, cayendo por debajo de 4.000$ mientras el Dólar registra sólidas ganancias. El XAU/USD cotiza en 3.978$, con una caída del 1.5%
placeholder
WTI desciende por debajo de 61.50$ ante el enfriamiento de las tensiones en Oriente PróximoEl West Texas Intermediate (WTI), el referente del petróleo crudo en EE.UU., está cotizando alrededor de los 61.20$ durante las primeras horas de negociación en Asia el viernes. El WTI pierde tracción en medio de la relajación de las tensiones geopolíticas en Oriente Próximo. Los operadores seguirán de cerca cuánto tiempo durará el cierre del gobierno federal de EE.UU.
Autor  FXStreet
2 hace una horas
El West Texas Intermediate (WTI), el referente del petróleo crudo en EE.UU., está cotizando alrededor de los 61.20$ durante las primeras horas de negociación en Asia el viernes. El WTI pierde tracción en medio de la relajación de las tensiones geopolíticas en Oriente Próximo. Los operadores seguirán de cerca cuánto tiempo durará el cierre del gobierno federal de EE.UU.
placeholder
El Yen japonés se mantiene cerca de su mínimo de ocho meses frente al Dólar en medio de preocupaciones fiscales y las perspectivas del BoJEl Yen japonés (JPY) se recupera ligeramente después de tocar un nuevo mínimo desde el 13 de febrero frente a un Dólar estadounidense (USD) en general más fuerte durante la sesión asiática del viernes, aunque el potencial alcista parece limitado
Autor  FXStreet
2 hace una horas
El Yen japonés (JPY) se recupera ligeramente después de tocar un nuevo mínimo desde el 13 de febrero frente a un Dólar estadounidense (USD) en general más fuerte durante la sesión asiática del viernes, aunque el potencial alcista parece limitado
goTop
quote