"Germany is preparing 2.9 trillion won in new subsidies for semiconductors"

Bloomberg reported that the German government is preparing 2 billion euros in new subsidies and 2.9 trillion won in our money to be paid for the construction of state-of-the-art semiconductor production facilities.

Germany's economy ministry said in a statement on Friday local time that the funding will be provided for the semiconductor company to develop "production capacity that significantly outperforms current state-of-the-art technologies."

Initially, the German government decided to apply the EU Semiconductor Act to provide 10 billion euros out of 30 billion euros in the construction cost of Intel's plant in Germany.

However, the subsidy payment was effectively canceled when Intel, which is in financial difficulty, put its plans to build a factory in Germany on hold in September.

Bloomberg said Germany's new government, which is due to be elected in February next year, is expected to provide the new subsidy with the government's budget.

The EU implemented a semiconductor law last year that subsidizes the construction of advanced production facilities, with the goal of expanding the EU's share of global semiconductor production from 9% to 20% by 2030.