New variables arise when Intel and TSMC set up factories in Germany: billions of dollars in subsidies are shelved

【Lansheng Technology News】On November 23, the European Union is actively promoting the development of the semiconductor industry and attracting multinational chip manufacturers to open factories and research institutions in Europe.

The European Union approved the European Chip Act in July this year, and various member states have also allocated budgets to attract factories through subsidies.

Germany has previously promised to provide $22 billion in incentives to chip manufacturers such asInteland TSMC. However, German media ComputerBase.de reported that Germany has shelved the payment of billions of dollars in subsidies due to problems with the use of funds.

Intel and TSMC have previously promised to invest billions of dollars in German factory projects, but without government subsidies, these costs will need to be borne byInteland TSMC themselves, which will undoubtedly lead to reducing the size of the project, slowing down the construction speed, or finding additional investor.

According to reports, the German Federal Constitutional Court issued a ruling to postpone the 2024 federal budget and believed that the misappropriation of anti-epidemic budget funds in 2022 was unconstitutional.

The ruling coalition (made up of the Social Democrats, Greens and FDP) has delayed final discussion and approval of the budget, causing delays in the chip subsidy project.

This means that the budget will not be put to a vote in the Bundestag next week (as planned) and will probably not be signed in time for the Federal President before the end of the year. While the coalition aims to finalize a budget within the year, it is unclear when it will move forward with approving the 2024 budget due to these complexities.