These stocks benefit from the subsidy race

Munich The excavators are on their way: new chip factories worth billions are being built in Dresden and Saarbrücken. As in Germany, the semiconductor companies are building one factory after the other around the world – with the help of huge subsidies.

World market leader Samsung alone wants to spend more than 200 billion dollars on new production facilities in South Korea in the next two decades. Countries and regions are outdoing each other with grants: the USA is providing more than 50 billion dollars, in the EU it should be over 40 billion euros. China even mobilizes 136 billion dollars.

With the construction boom, the shares of the equipment manufacturers come into focus. The plant manufacturers could become the big beneficiaries of the subsidy race. However, investors need patience. According to the SEMI industry association, the chip companies will spend around a fifth less on new equipment for so-called front-end factories this year than in 2021 due to the economic downturn.