Subsidies that multinational chipmakers are set to receive to build their fabs in Europe will come from two sources: the European Union itself, as part of the European Chips Act approved in July, and individual states. So far, Germany has promised $22 billion in incentives to chipmakers like Intel and TSMC, which is why the companies announced plans to build fabs there. But it looks like a stalled German budget approval has slowed down billions for the chipmakers, according to a report from ComputerBase.de.
Both Intel and TSMC vowed to invest billions in their projects in Germany, so without timely government money, the companies may need to invest additional money themselves (i.e., increase their CapEx or reallocate funds from other projects), scale down their projects, slow buildout, or find additional investors.
