According to media reports, the German government plans to allocate 200 billion euros (approximately 220 billion US dollars) to support the domestic semiconductor manufacturing industry. Participants in the negotiations revealed that the funds will be extracted from the Climate and Transformation Fund and distributed to local and international companies before 2027.

Last July, the German federal government approved the "Climate and Transformation Fund" with a total amount of approximately 177.5 billion euros. The fund was originally scheduled to be used in energy transformation and climate protection, but its scope was later expanded. Sources say that negotiations are currently underway within the government regarding funding, and the results will be announced in the coming weeks.

The German government has previously agreed to provide 10 billion euros in aid to Intel's 30 billion euro new factory, and sources have added that the government is expected to provide a total of approximately 7 billion euros in subsidies to companies such as Infineon and TSMC. In addition, there is at least 3 billion euros available for other projects, which may benefit the existing factories of Gexin and Bosch in Germany.

According to the media, Germany's move is intended to support the country's technology industry and ensure the supply of key parts, so as to prevent the recurrence of the difficult situation of "core shortage" at the initial stage of the COVID-19 epidemic. However, analysis indicates that most of the funds have gone to non European companies, with almost half going to Intel in the United States.

After reaching a subsidy agreement worth nearly 10 billion euros with Intel last month, Vice-Chancellor of Germany and Minister of Economy and Climate Protection Robert Habak said that his country would support specific projects in strategic industries. "We will not provide funds for everyone, but only support selected projects.".

Habak pointed out that semiconductors are particularly important, "they will be everywhere in the future", so the subsidy of Intel's investment of more than 30 billion euros in Germany is an investment in Economic security.

In addition, the German government has entered the final stage of negotiations on investing in TSMC to build a factory in Dresden in the east. Insiders have revealed that subsidies of up to 5 billion euros have been budgeted, accounting for about half of the estimated investment of 10 billion euros in the new factory.

The German government has also designated approximately 1 billion euros in aid for Infineon, accounting for approximately 20% of the 5 billion euros invested in its new Dresden factory.