German government vows to secure subsidy for TSMC
German Chancellor Olaf Scholz and Economic Affairs and Climate Action Minister Robert Habeck have vowed to solve investment subsidy issues for TSMC and Intel.
This comes as Germany's Federal Constitutional Court cast doubt over the funding which had been aimed at subsidizing the building of local chip plants. The court had ruled the government's decision to reallocate €60 billion of unused funding from pandemic support measures to its Climate and Transformation Fund in 2022 was unconstitutional. Some of that funding had been designated to support investments by companies such as TSMC and Intel in Germany.
The ruling came as TSMC began work on a joint venture to build a semiconductor fab in Dresden in the state of Saxony. The fab is expected to cost €10 billion, and TSMC was slated to receive subsidies making up half of that total.