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Germany’s automotive electronics will drive European chip demand

Germany’s automotive electronics will drive European chip demand

Posted Date: 2023-08-02

August 1, 2023 /SemiMedia/ — Based on experiences, Oliver Seiler, a semiconductor professional on the German Federal Commerce and Make investments Company, mentioned that Germany is the world’s largest automotive electronics market. Along with sensible manufacturing and synthetic intelligence, the automotive business will drive demand for chips in Europe.

Seiler identified that with a purpose to keep away from falling into the dilemma of chip scarcity once more, even the car business is now investing in its personal manufacturing capability, particularly the standard car producers need to get a share. For instance, Bosch arrange a fab in Dresden, which was formally opened in July 2021; ZF and Wolfspeed introduced in February this yr that they'd construct a fab in Saarbon, western Germany; Infineon has considerably expanded its manufacturing capability, and a brand new plant with an funding of 5 billion euros has began building in Dresden in Could this yr.

Along with auto components and chip producers, wafer foundries are additionally deployed in Germany. TSMC might determine to construct a manufacturing unit in Dresden inside a couple of weeks.

The German Economic system Ministry mentioned on July 25 that the federal government is getting ready subsidies value round 20 billion euros ($22 billion) to assist the event of native semiconductor manufacturing within the coming years.