Germany’s budget crisis could affect plans to hand out billions of euros in government subsidies to chip companies, potentially stymying its hopes of playing a significant role in the global semiconductor industry.
The German government has promised vast amounts of state support to international chipmakers investing in Europe’s largest economy. Intel, which is spending €30bn ($32.5bn) on two new factories in the eastern town of Magdeburg, is to receive €9.9bn in grants for its project, the largest foreign investment in the country’s postwar history.
But doubts about state support have grown ever since a bombshell judgment by the German constitutional court last month which has plunged the government’s spending plans for 2024 into disarray.
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