Germany Expands Global Reach: Key Investments and Strategic Moves in Asia
From boosting semiconductor production and offshore wind capacity to enhancing recycled plastics trading, Germany's strategic initiatives underscore its commitment to global sustainability and securit
This edition of the Germany in Asia newsletter highlights Germany's pivotal role in global economic and environmental strategies, focusing on significant investments and partnerships across Asia. From semiconductor subsidies to green energy initiatives, Germany's actions reflect a broader commitment to sustainable development and international cooperation.
Top Stories
EU Approves €5 Billion Subsidy for TSMC's Dresden Semiconductor Plant
On the day of the groundbreaking for TSMC’s new semiconductor factory in Dresden, the European Commission approved a €5 billion subsidy for the plant and hinted at further support for the sector. Chancellor Olaf Scholz defended the financial aid, emphasizing its necessity to avoid growing dependence on other regions for semiconductor production. He noted that Europe must increase its semiconductor capacity to keep pace with rising demand driven by digitalization and the shift from fossil fuels. Scholz underscored that investing in domestic production is crucial, even if it is more costly, to prevent reliance on global supply chains. The new factory, part of a larger €10 billion investment, will contribute significantly to the European semiconductor industry, joining other major investments in the region. Scholz and Saxony’s Economy Minister Martin Dulig expressed confidence in the project’s success and its positive impact on Dresden's economic development.
Source: Spiegel
German Navy Chief: Sea Lane Security Drives Military Engagement in Indo-Pacific
German Navy Chief Vice Adm. Jan Christian Kaack emphasized that Germany's increasing military presence in the Indo-Pacific, including the recent deployment of two warships to Japan, is aimed at safeguarding vital international sea lanes and countering China's growing maritime assertiveness. Kaack expressed concerns about China's expanding naval capabilities, artificial islands in the South China Sea, and potential disruptions to global trade routes. He underscored that Germany's engagement is part of a broader strategy to uphold international law and ensure stability in the region, which is crucial for Germany’s economic interests. Despite criticism that this focus might detract from European priorities, Kaack argued that global security challenges require a balanced approach, integrating both regional and global concerns. The German Navy's efforts also include strengthening alliances and conducting joint exercises with Indo-Pacific partners, reflecting a commitment to a rules-based international order and collaborative security measures.
Source: Japan Times
Cirplus Expands to India with New Entity to Boost Recycled Plastics Market
Cirplus GmbH, a Hamburg-based platform for trading recycled plastics, has launched Cirplus India Pvt. Ltd. in Mumbai, marking its entry into the Indian and broader Asian markets. This strategic move aims to meet the rising demand for recycled plastics and support regional sustainability goals by fostering a circular economy. Ramesh Parasuraman, with 30 years of experience in the plastics industry, has been appointed managing director. He is tasked with enhancing the availability and quality of recycled plastics, addressing the need for compliance with tightening regulations on recycled content in various sectors.Christian Schiller, Cirplus' founder and CEO, highlighted the significance of this expansion in transforming the global recycled plastics landscape and creating business opportunities in India and Asia. Cirplus India will offer services such as supplier matching, material aggregation, logistics, and quality control, and will leverage digital infrastructure for managing complex material streams.
Source: Recykling Today
Sumitomo Corporation Invests in EEW Offshore Wind EU Holding to Boost European Wind Power Capacity
On August 14, 2024, Sumitomo Corporation, a major Japanese conglomerate headquartered in Tokyo, announced an investment in EEW Offshore Wind EU Holding (EEW), a leading German manufacturer of monopiles for offshore wind power foundations. This strategic move, expected to be finalized by December 2024, aims to address the rising demand for monopiles as Europe expands its offshore wind energy capacity. EEW's expertise in producing large-diameter steel pipes is crucial for supporting Europe's ambitious offshore wind goals, which target a capacity of 164GW by 2030 and 549GW by 2050. The demand for monopiles is anticipated to grow significantly, from 650,000 tons annually in 2023 to over 1 million tons by 2026. Sumitomo's investment aligns with its Medium-Term Management Plan, focusing on green transformation and carbon neutrality. This investment not only supports the European offshore wind sector but also reinforces Sumitomo's commitment to sustainable energy solutions on a global scale. The partnership highlights Sumitomo's role in bridging Asian and European markets, reflecting its strategic approach to integrating global operations and fostering international collaboration in renewable energy. This move underscores Sumitomo's dedication to advancing a sustainable energy future while leveraging its extensive business relationships and expertise in the global market.
Source: Sumitomo Corp.
Government
Chancellor Scholz Celebrates TSMC's Groundbreaking: "Semiconductors are the Fuel of the 21st Century"
At the groundbreaking for TSMC’s new semiconductor factory in Dresden, Chancellor Olaf Scholz highlighted the crucial role of semiconductors as the "fuel" of the 21st century, essential for digitization and the shift from fossil fuels. He praised TSMC as a pioneering force that will enhance Dresden’s status as the heart of European chip industry. Scholz emphasized the importance of expanding semiconductor production in Europe to avoid dependency on other regions while maintaining global supply chains. He addressed criticisms of government subsidies, asserting they are vital for the industry’s future and broader economic benefits. The new plant is expected to boost the region’s economic strength and contribute to the successful development of Eastern Germany.
Source: Bundesregierung
Chancellor Scholz Congratulates Professor Mohammad Yunus on His Appointment as Chief Adviser of Bangladesh's Interim Government
German Chancellor Olaf Scholz sent a congratulatory message to Professor Mohammad Yunus following his appointment as Chief Adviser of the Interim Government of the People's Republic of Bangladesh. Professor Yunus, a Nobel Peace Prize laureate and renowned for his work in microfinance, has been appointed to lead the interim government during a crucial transition period in Bangladesh. Scholz recognized the importance of this responsibility, stating, "You are taking on responsibility during a significant phase in the development of your country." He conveyed his best wishes, saying, "I wish you and the interim government much strength and success for the tasks ahead." Scholz's message highlighted the challenges and opportunities facing Yunus and his government as they guide the country through this transitional period.
Source: Bundesregierung
State Minister Lindner Visits Tokyo Port to Strengthen Security Ties with Japan
State Minister Christian Lindner is set to travel to Japan from August 22 to 24 for political discussions and a port visit to Tokyo. This visit is part of the Indo-Pacific Deployment 2024 and will involve the German Navy’s frigate "Baden-Württemberg" and the replenishment ship "Frankfurt am Main." Lindner emphasized the importance of stability in the Indo-Pacific region for global trade and value chains, which directly impacts prosperity in both Germany and Japan. He highlighted that the visit underscores Japan's central role in their strategic partnership and reflects their shared commitment to democratic principles and a free, rules-based economic exchange. Lindner also noted that the newly implemented "Acquisition and Cross-Servicing Agreement" (ACSA), effective from July 12, 2024, will facilitate logistical support and enhance German-Japanese cooperation in security and defense matters.
Source: Auswärtiges Amt
Armed Forces
Navy
German Navy Commander Reflects on Indo-Pacific Deployment 2024 and Successful Participation in RIMPAC Exercise
In an interview conducted during the Indo-Pacific Deployment (IPD) 2024, Fregattenkapitän Sascha Huth of the German Navy discussed his experiences and reflections on leading the crew of the frigate "Baden-Württemberg" during the mission, focusing on the challenges of crew rotation, the operational readiness of the ship, and participation in the RIMPAC 2024 exercise.
Fregattenkapitän Sascha Huth took command of the frigate "Baden-Württemberg" in June 2024, during the IPD 2024 mission, succeeding the previous crew in a complex handover in San Diego. He emphasized the importance of thorough preparation for such a crew change, particularly given the limited time and the need to maintain the ship's operational readiness. Key factors for a successful transition included understanding the ship's technical status, ensuring timely delivery of spare parts from Germany, and adequate support from technicians.
The IPD 2024 mission also serves as a test of the endurance and intensive use of the F125-class frigates, which are designed for long-term deployment with minimal maintenance due to automation and a multiple crew concept. This allows the ship to remain operationally ready for nearly two years. The personnel on board are also highly trained and certified, but maintaining their performance level requires continuous practice and attention to crew welfare.
Huth highlighted the strategic advantage of having the replenishment ship "Frankfurt am Main" accompany the "Baden-Württemberg" during the deployment. This significantly enhances the frigate's endurance at sea by providing additional storage for fuel, supplies, spare parts, and medical facilities. He cited a life-saving emergency surgery performed on a Mexican crew member as an example of the benefits of this support.
The participation of "Baden-Württemberg" in RIMPAC 2024 marked the first time German Navy ships took part in this major international naval exercise. Huth praised the exercise as an invaluable experience for his crew, despite the challenges of managing operations among nearly 40 ships from around 30 nations. The crew gained significant operational experience, particularly in ship and fleet management.
Reflecting on the broader significance of IPD 2024, Huth expressed pride in contributing to Germany's maritime presence in the Indo-Pacific region. The deployment not only strengthens existing alliances but also fosters new partnerships, emphasizing the global reach and strategic importance of the German Navy in today's interconnected world.
Source: Marine
Air Force
German Eurofighters Set World Record with 10-Hour Nonstop Flight from Japan to Hawaii
During the Pacific Skies 24 exercise, German Eurofighter pilots set a world record by completing the longest nonstop flight in the aircraft's history, flying over 10 hours from Chitose, Japan, to Hickam Air Force Base in Hawaii. The flight lasted 10 hours and 31 minutes, surpassing the previous record of 9 hours and 45 minutes. Despite the Eurofighter Typhoon not being designed for long-distance flights, thorough planning and special preparations, including psychological and physical conditioning for the pilots, ensured the mission's success. The pilots faced challenges such as fatigue, boredom, and physical discomfort during the flight. The mission involved complex maneuvers like aerial refueling, which were further complicated by night operations. One of the pilots, Oberstleutnant Marco B., noted that the flight went smoothly and could have lasted even longer. The achievement, which is currently awaiting recognition by the Guinness Book of World Records, highlights the extraordinary capabilities and resilience of both the pilots and the aircraft.
Source: Luftwaffe
Other Side
Global Times Editorial: EU's Misguided Risks Pose Greater Threat
The Global Times editorial criticizes the European Commission's draft decision to impose countervailing duties on Chinese electric vehicles (EVs), arguing that the move is driven by misguided risk perceptions. Despite ongoing technical consultations between China and the EU, the Commission's proposal only slightly reduces the initial tariff rates, failing to address China's concerns or the internal dissent among EU member states. The editorial highlights that this decision could raise costs for European consumers, harm European manufacturers' competitiveness, and disrupt global trade. It calls for the EU to engage more constructively with China and resolve trade disputes through dialogue rather than punitive measures, emphasizing that such an approach undermines the longstanding cooperative relationship between China and the EU.
Source: Global Times
Thank you for reading this edition of the Germany in Asia newsletter. We appreciate your interest in how Germany's strategic investments and partnerships are shaping the future of global collaboration and sustainability.