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Germany Unveils €2 Billion Boost to Propel Domestic Semiconductor Surge

Word on the StreetThursday, Nov 28, 2024 6:00 pm ET

1min read

The German government is reportedly set to bolster the domestic semiconductor sector with substantial financial support, marking a significant move amid the global race for technological advancement. This initiative comes two months after Intel paused its plans for a €30 billion chip manufacturing facility in Magdeburg, highlighting the geopolitical and economic importance of enhancing local chip production capabilities.

According to Annika Einhorn, spokesperson for the German Ministry of Economic Affairs, the new funding is intended to support chip companies in developing cutting-edge facilities that exceed current technological standards. This funding is part of Germany's broader strategy to secure a competitive edge in the global semiconductor landscape and reduce reliance on foreign chip sources.

Individuals involved in recent official discussions suggest that the financial aid package will total approximately €2 billion. Although the specifics of these discussions remain confidential, the German government aims to stimulate innovation and manufacturing across various segments of the semiconductor supply chain, including raw wafer production and microchip assembly.

This move reflects Germany's focus on reinforcing its technological infrastructure and supporting high-potential projects within the semiconductor industry. By targeting between 10 to 15 projects, the government seeks to foster a robust and self-sufficient semiconductor ecosystem, thereby enhancing national economic security and technological leadership.

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lookingforfinaltix

11/29

$INTC gains of 26% are on the horizon.

911Sheesh

$INTC "Intel has secured three major contracts for external fabrication, with AWS being singled out for the hyperscaler's custom silicon. In Q2 '24, Intel intensified its efforts to grab a larger slice of the AI PC market with Lunar Lake, even as it reduced gross margins. Intel is poised to benefit from favorable winds as it rolls out higher-margin chips and starts producing external chips." Great analysis of Intel in this piece. Check it out here: https://seekingalpha.com/article/4740792-intel-is-steering-the-ship-to-profitability-rating-upgrade

uncensored_84

$INTC has been honored with a grant to bolster Intel's ambitious $100 billion investment strategy aimed at bolstering American semiconductor production and maintaining its technological leadership. The U.S. Department of Commerce has presented Intel with up to $7.86 billion in direct funding under the U.S. CHIPS and Science Act to further its commercial semiconductor manufacturing and advanced packaging initiatives in Arizona, New Mexico, Ohio, and Oregon. This substantial funding complements the $3 billion contract Intel received for the Secure Enclave program, intended to scale up trusted manufacturing of advanced semiconductors for the U.S. government. With today’s award and a 25% investment tax credit, Intel is now poised to commit over $100 billion to U.S.-based investments.

MarketGuru

$INTC

PlatHobbits7

$INTC Algorithms are currently behind AMD by about 8 basis points. This might continue until Intel manages to demonstrate otherwise.

Ok-Memory2809

What are your thoughts on Amazon developing their own AI chips? If more companies jump into this game, could NVIDIA find itself in an Intel-like predicament down the road?

$INTC When will this stock see some overnight activity? 0 volume.

Overlord1317

$INTC should have considered SOX or NVDA instead. This stock is trailing upwards.

Sjgreen

$INTC, this stock is underwhelming. Every other semiconductor is on the rise, yet this one remains stagnant.

Puzzleheaded-Mood544

11/28

German chip game strong. 🚀 $2B ain't peanuts. Gonna watch how this plays out. Might have to adjust my semiconductor ETF.

Plane-Salamander2580

Germany going all in on semis, but can they keep up with the likes of Taiwan and South Korea? 🤔

michael_curdt

Intel bailed, but Germany's like, "Hey, we got this." Local production boost could be a game-changer. Wonder who else jumps in.

joethemaker22

$2B boost could shake up the semiconductor scene.

Jake__Wujastyk

Germany's chip game strong, but Intel's a wild card

bottlethecat

EU's playing hardball with chip production. Could be a solid hedge against global supply chain drama.