Shortages in the global semiconductor market have hampered Germany's post-coronavirus recovery, Chancellor Angela Merkel admitted during the launch of a chip factory in Dresden
BERLIN (Pakistan Point News / Sputnik - 07th June, 2021) Shortages in the global semiconductor market have hampered Germany's post-coronavirus recovery, Chancellor Angela Merkel admitted during the launch of a chip factory in Dresden.
"Bottlenecks on the semiconductor market have hampered economic recovery after the coronavirus crisis," Merkel said during a video link-up.
She said semiconductors had replaced oil to become the new economic "life force." But their shortages have rattled the market. The automotive sector in particular has been forced to slow down production over the lack of crucial chips.
German tech giant Bosch has set up a fully automated chip plant worth 1 billion Euros ($1.2 billion) in the eastern city of Dresden. It will employ 700 people, according to the German government.
Merkel added that her government would invest 400 million euros in national microelectronics projects to compete more effectively with Asian and American manufacturers.
