Germany's high-tech agenda: AI to account for 10 percent of economic output

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The German government wants to use its high-tech agenda to bring Germany to the forefront in six areas, according to the Handelsblatt newspaper. A total of €5.5 billion is to be invested in artificial intelligence, quantum computing, microelectronics, fusion research, climate-neutral mobility, and biotechnology. This is according to a draft strategy paper from the Federal Ministry of Education and Research, which has been seen by the Handelsblatt. Research Minister Dorothee Bär (CSU) submitted the draft to the other federal ministries for approval last week, and a decision could be made as early as next week.

According to the Handelsblatt report, the strategy aims to make "new technologies made in Germany" the hallmark of the country once again. The federal government wants to promote the numerous projects as an anchor customer and partner to industry in the form of public-private partnerships. The first measures are to be launched as early as 2025, with the long-term goal of unleashing a "lively culture of innovation."

More economic output with AI

Among other things, "large-scale funding initiatives for next-generation artificial intelligence models" are planned. Universities are to build up computing capacities, data infrastructures, and expertise for AI, and leading research institutions are to be better networked with start-ups. The ambitious goal is that by 2030, ten percent of German economic output should be AI-based. Important areas for the use of AI include robotics, medicine, and classic German key industries such as the automotive and chemical industries.

The federal government also sees the AI gigafactories built in the country with EU funds as important infrastructure for this AI boom. "Start-up is planned for mid-2027," the draft states. However, it is not yet clear where the EU intends to promote the establishment of AI factories. By the deadline at the end of June, 76 companies and organizations from 16 member states had expressed interest in building up to 60 AI gigafactories – partly through consortia. The EU plans to spend 230 billion euros on this over the next few years.

Number one chip production location?

The German government also has big plans for the semiconductor industry: "We are bringing new chip factories to Germany and establishing Germany as the number one chip production location." In 2026, a "chip design competence center" is to be established to drive the development of efficient AI chips. The German government has identified opportunities for Germany in AI chips for industry.

Equipment and preliminary products for semiconductor manufacturing are also to be produced increasingly in Germany. "At least three new plants" are to create incentives for this, as are partnerships with international technology leaders. Dependence on third parties is also to be reduced, and skills that are important in international competition must be retained in the country.

Quantum computing and world market leader in fusion

In quantum computing, the federal government assumes that "quantum computers at the European cutting edge" will be available by 2030. A "mission-driven hardware competition" is to help achieve this goal. The federal government also wants to support research institutions and high-performance computing centers in the purchase of quantum computers, and a location competition is to determine the suitable candidates. The first German research satellite for testing quantum communication is scheduled to go into space in 2025, with a second one following in 2026.

According to the report, the federal government hopes to become a world leader in nuclear fusion. A plan for the construction of Germany's first fusion power plant is to be in place by the end of the year. In addition, the government wants to accelerate the development of climate-neutral energy by promoting research into wind turbines, photovoltaics, battery storage, geothermal energy, and hydrogen.

In terms of climate-neutral mobility, the goal is to establish competitive battery production, including recycling, in Germany by 2035. Among other things, a battery competence cluster is to pave the way for this starting in 2026. But e-fuels are also to be promoted. The federal government hopes that the support measures in biotechnology will lead to greater "sovereignty in the development of tomorrow's medicine" as well as better crops and more plant protection.

The outcome of all these high-tech approaches will also be evaluated: according to the Handelsblatt, the strategy calls for "360-degree high-tech monitoring" with digital dashboards to track progress.

(axk)