Things are getting more complicated in Germany, where the location of Intel and TSMC fabs is in jeopardy. Berlin has to find a way to balance its budget and finance the promised subsidies for these two companies. The icing on the cake is that this has to be done within seven days!
Intel and TSMC: financing worries!
The origin of the crisis is simple: the money promised to subsidize the establishment of these companies on German soil came from another fund. The KTF (Climate and Transformation Fund in German) was financed, in part, by money from the covid fund. However, this transfer has been ruled illegal by the Federal Constitutional Court, AH!
This brings a huge problem to the table, since the fund was intended to subsidize, among other things, the installation of Intel and TSMC factories on German soil. If we’re talking about an envelope of 15 billion for these two companies, the total hole in the budget amounts to 60 billion.
In any case, the country is facing a crisis situation, since a solution to this problem must be found within seven days. We’re talking here about the budget for 2024. Of course, to solve the problem, some would like to see the cancellation of subsidies, in which case no TSMC or Intel in Germany. This would also give these companies the opportunity to take legal action. Not very serious, is it?
