Germany makes new move to attract chip manufacturers

Germany's government is looking to attract chipmakers to the country by offering €14 billion ($14.7 billion) in financial support, apparently spurred on by global semiconductor supply chain problems. The move follows the European Chips Act from the European Commission and Intel's decision earlier this year to build a new …

[VoiceOfTruth]

Cue the usual process

State aid from some EU country, in a few years the USA complains about it and imposes tariffs and sanctions. Meanwhile the pot is calling the kettle black.

Eventually this goes to the WTO and find that both parties are guilty.

[confused and dazed]

Missed opportunity

Germany used to Have Hitachi DRAM, Mitsubishi DRAM and Siemens DRAM amongst others. They all eventually failed. While I think this is a good idea, there has to be a plan to keep pace this time

[ForthIsNotDead]

The way Germany are going with shutting down coal plants, shutting down nuclear plants, and shutting down energy imports from Russia, the Germans are likely to be sitting in the dark this coming winter. So why would I want to open a chip factory in Germany? Best bets for this kind of thing currently would be Vietnam, Mexico, or India. Certainly not China or Europe.

[tomgid]

You clearly don't understand the industry. Due to automation, the so-called fabs are now running almost without human workforce. It's the robots that ship, bake, wash, inspect, dice the semiconductor chips while human workers monitor them in a separate control room. A recent fab complex built in Germany employs only a half thousand people. This is why the US is trying to bring back the chip manufacturing onshore right now since with labor costs evening out, subsidies could make a great difference in competing with cheap Asian countries.

Aside from that, the semiconductor industry is generally considered to be making high tech jobs.

[VoiceOfTruth]

Germany and energy

They are certainly going to be paying a lot more for imported gas. You cannot beat a pipeline for cost. It runs 24x7.

Which country is benefitting most from Germany buying US gas? Answer: not Germany.

[Bitsminer]

$11 billion here, $52 billion there, $10 billion over there

Pretty soon you'll be talking real money.

[pimppetgaeghsr]

This might get those auto factories online again sometime in the next 10-15 years.

[NoneSuch]

€14 billion !?

For that, I can make some lovely chips. I'll throw in the vinegar for nothing.

[Boris the Cockroach]

And if the predictions are

right, it will come on stream in 2024 when everyone else who's rushed to get fabs online will be bringing their fabs on line and the price of chips will plummet faster than a downing street beer.

Then the fabs will go bust, be demolished and in 2026 everyone goes "No chips!!!" again and everyone rushes to build fabs....

[Korev]

Re: And if the predictions are

Sounds fab...

[codejunky]

Re: And if the predictions are

@Boris the Cockroach

"right, it will come on stream in 2024 when everyone else who's rushed to get fabs online will be bringing their fabs on line and the price of chips will plummet faster than a downing street beer."

Well said. The rest of the world will benefit from this though.