The federal government is currently putting billions of euros in tax money into the settlement of new chip factories – especially in the eastern federal states. Reint Gropp, President of the Leibniz Institute for Economic Research in Halle (IWH), doesn’t think that makes sense. “We throw the money out the window,” he criticized in an interview with the Süddeutsche Zeitung and called for the funds to be used elsewhere.
As a concrete negative example, he cited the new Infineon plant in Dresden. “The public funding for the new Infineon factory in Dresden will be one million euros per job – that’s too much,” he said. And for different reasons. A profitable company would be given gifts of money, although it is not at all clear whether these capacities are really needed to intercept a possible future bottleneck in semiconductor products. In addition, the plant does not even use the most modern process technologies that advance the semiconductor industry. Rather, it is about established production technology, as it is part of everyday life in industry.
Dear universities and startups
Things are different at Intel in Magdeburg, where the spiral of subsidies is running in the billions. High-end processes should definitely be used here. But here, too, Gropp takes a critical view of the subsidies. Because Intel will produce at the highest level at the location, but will also not establish any research and development that brings groundbreaking decisions in the chip industry. Something similar has already been shown with the investments in the Saxon car factories of BMW and Porsche.
“We should better promote future technologies,” said the economist. As is well known, the German economy can only survive internationally if it comes up with its own innovations. The billions would therefore be invested much more sustainably in universities and research institutions, but also as start-up financing for new companies.
- Criticism of government funding for new chip factories.
- Promotion of a new Infineon factory in Dresden as a negative example
- Intel factory in Magdeburg: Subsidies also critical here
- Start-up financing for new companies much more sustainable
- Investing billions in research institutions for innovations
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