July 26, 2023 /SemiMedia/ -- The German Economy Ministry said on July 25 that the government is preparing subsidies worth around 20 billion euros ($22 billion) to support the development of local semiconductor production in the coming years.

The ministry said the source of the funding was the Climate and Transformation Fund, but did not specify a timeline for the planned assistance.

According to earlier reports, the German government has agreed to provide 10 billion euros in subsidies for Intel's new factory, and is agreeing to provide about 6 billion euros in additional subsidies to companies such as TSMC and Infineon Technologies.

The total subsidy program suggests that at least 3 billion euros are still available for additional investment, which could benefit other companies active in Germany. GF has a sizable presence in Dresden, while German supplier Bosch also operates a chip factory in the city.