Germany’s Global Chip Superpower Ambition Crumbles
Marian Schultz
▶January 7, 2025
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The Rundown: Germany’s grand vision to dominate the semiconductor industry is unraveling. Intel’s €30B Magdeburg project is on hold, compounding a series of investment setbacks that jeopardize Chancellor Olaf Scholz’s industrial legacy.
The Context:
- Scholz championed the EU’s semiconductor push, aiming to raise its global market share from 8.1% in 2024 to 20% by 2030 — now a distant goal.
- The Magdeburg pause follows abandoned plans from Wolfspeed and GlobalFoundries. TSMC’s joint venture in Dresden is one of the few remaining projects.
- Europe lags behind global players like China ($142B subsidies) and the U.S. ($39B CHIPS Act), struggling to secure cutting-edge chip facilities.
- Scholz’s coalition collapsed in November, further clouding the future of Germany’s high-tech ambitions.
Why it Matters: Microchips are the foundation of AI, electronics, and global innovation. Germany’s struggles highlight Europe’s challenges in competing with superpowers for tech dominance. With elections imminent, Scholz’s inability to secure Germany’s semiconductor dreams may mark a turning point for Europe’s industrial ambitions.
