The German government is planning € 14 billion in state aid for chip manufacturers. Country Vice Chancellor and Minister of Economy Robert Habeck said of the intention on Thursday. He stressed that chip shortages were a massive problem.
“It’s a lot of money,” Habeck said at an event for family businesses in Hanover, according to Reuters.
The global chip shortage affects many different industries, as the lack of components makes it difficult for car manufacturers, telecom operators and electronics manufacturers alike to operate. Component manufacturers themselves also suffer from chip shortages, which makes it difficult to increase production capacity.
In February, the European Commission published a plan to promote European chip production. Key elements of the plan include state aid to component plants.
In March, an American chip giant Intel said it would open a large production plant in Magdeburg, Germany, with a total value of EUR 17 billion. It is known that the German government is supporting the project with billions of euros in funding.
According to Habeck, similar projects will continue in the future.