FRANKFURT (AFP) – United States (US) chip giant GlobalFoundries wants EUR4 billion (USD4.2 billion) in subsidies from Berlin for a massive expansion of a German plant after rivals received government support, a report said on Thursday.
Germany is racing to boost semiconductor production, part of a European drive to reduce reliance on chips from Asia, and manufacturers have announced a series of new projects there in recent months.
TSMC and Intel from the United States both received hefty government subsidies for their projects – and now GlobalFoundries is seeking the same.
It wants to invest EUR8 billion to double the capacity of its plant in the eastern German city of Dresden, CEO Thomas Caulfield told German business daily Handelsblatt.
But it is seeking the same level of government support afforded to TSMC, which is reportedly having around half the cost of a EUR10-billion factory covered by Berlin.
“We are confident that the government does not want to distort the market,” Caulfield told the newspaper, adding that if a profitable company like TSMC is subsidised, then the same must be possible for competitors.
A spokeswoman confirmed to AFP the company planned to expand its Dresden site “when market conditions are favourable”.
The report said talks were underway with the German government, although they were not far advanced.
GlobalFoundries has previously spoken out about the impact of subsidies handed to TSMC in Germany.
