IFNNY - German Chancellor Scholz says additional chip investments are coming

2023-07-05 11:47:11 ET

German Chancellor Olaf Scholz said on Wednesday that he was aware of additional investments by semiconductor companies looking to break ground in the European country, nearly two weeks after Intel ( NASDAQ: INTC ) made the single largest foreign direct investment in the country's history.

"I know of other plans by German companies and many others," Scholz told the Bundestag lower house of parliament, according to Reuters .

Scholz did not specifically name any companies at the event, but Germany has worked extensively in recent memory to boost its domestic semiconductor production.

In late June, after months of negotiations, Intel ( INTC ) finalized its plan to invest approximately $33B, or €30B, to two semiconductor facilities in Germany.

Intel's ( INTC ) fabs will be in Magdeburg, the capital of Saxony-Anhalt state. The Santa Clara, California-based Intel ( INTC ) reportedly received €9.9B in subsidies for the plants, arguing that it needed more than the €6.8B that was initially agreed upon due to higher energy costs and the use of more advanced technology inside the plant.

In May, Infineon ( OTCQX:IFNNY ) broke ground on a new manufacturing plant in its home country of Germany.

Prior to that, Wolfspeed ( WOLF ) said in February that it would build a new $2.3B plant in Saarland, Germany, producing cutting edge 200 mm wafers.

Taiwan Semiconductor ( TSM ) is also reportedly looking into building a chip fab in Saxony, Germany. The global foundry giant may work with NXP Semiconductors ( NXPI ), Infineon Technologies ( OTCQX:IFNNY ) and Robert Bosch GmbH on the plant, according to media reports.

In April, the European Union finalized its $47B CHIPs Act in an effort to better compete with the U.S. and Asia for semiconductor production.

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