German officials say they will solve the budget problem holding up the construction subsidies for new semiconductor fabs to be built in Germany by TSMC and Intel.
The German government has been dealing with a budget crisis since a German court ruled that certain fund allocations for the 2024 budget were unconstitutional. Specifically, the court took issue with the attempt to move unused money from a COVID-19 response fund to the Climate and Transportation Fund. This fund includes the subsidies for new fabs being built by Taiwan’s TSMC as well as American chipmaker Intel, leaving the timetable for their construction in question.
On the 27th, Vice Chancellor and Economic and Climate Minister Robert Habeck met with the heads of several German state governments to discuss the issue. Following his meetings, he said that a solution would be found as soon as possible, calling the new fab projects central to the German economy.
Intel currently plans to invest 30 billion euros for projects in the city of Magdeburg, while TSMC is planning to invest 10 billion euros for projects in the city of Dresden. The German government plans to subsidize these projects at the level of 9.9 billion and 5 billion euros, respectively.