The German government reportedly set aside a total pot of €20 billion to be distributed by 2027 to bolster the country’s semiconductor industry, half of which has already been allocated to US giant Intel.

Bloomberg reported the government will use the money to cement the country’s technology sector and secure supplies of critical components, to be doled out to German and international companies.

Around 75 per cent of the sum has all but been allocated, comprising a €10 billion investment in a new Intel manufacturing facility and deals in the works to provide €5 billion in subsidies for Taiwan Semiconductor Manufacturing Company (TSMC) and €1 billion to Infineon.

In addition, a joint venture between German automotive supplier ZF Friedrichshafen and US chipmaker Wolfspeed is in line to receive €750 million in state funds.

Bloomberg reported other companies already active in Germany could benefit from the remaining pot of around €3 billion, including GlobalFoundries and supplier Bosch which both have a chip presence in the city of Dresden.

The €20 billion fund for chip support was originally allocated to invest in the decarbonisation of the economy, but its scope has expanded to the technology sector.