Zvei information 04/2025

ZVEI on the special fund: Targeting funds towards future investments

Strengthening infrastructure for electrification and digitalization

Wolfgang Weber, Chairman of the ZVEI Board of Directors, comments on the special fund approved by the Bundestag:

"The special fund adopted today is an opportunity to strengthen the infrastructure for electrification and digitalization in a targeted manner - and thus both enable efficient climate protection and make Germany fit for the future as an industrial location. In order for the funds to be fully effective, they must flow into future-oriented investments - in efficient electricity grids, key strategic technologies and a modern digital infrastructure. At the same time, regulatory hurdles must be removed to enable rapid and efficient expansion.

An efficient electricity grid infrastructure is the basic prerequisite for electromobility, storage technologies, heat pumps and the electrification of industry. A key area of investment must therefore be the expansion and digitalization of electricity grids - from transmission and distribution grids to district grids and buildings. At the same time, competitive electricity prices for all consumers are essential in order to drive forward decarbonization. In Germany, electricity costs for industry, commerce and private consumers are 25 percent and more above the EU average - the planned reduction in electricity tax and a cap on grid fees will facilitate investment in climate-friendly technologies and strengthen the competitiveness of industry. In addition, a reform of the levy and surcharge structure is needed in order to actually guarantee the desired reduction in electricity prices for everyone.

Targeted investments are also needed for the expansion of key strategic technologies such as microelectronics and batteries. This contributes to Germany's security of supply and technological sovereignty and strengthens the resilience of European industry in the face of specific geopolitical risks. The positive effects extend far beyond the directly funded sectors. Other areas of investment include the decarbonization of the building sector, the technical modernization and medical equipment of hospitals and the digitalization of rail infrastructure, including trains, to increase the efficiency and performance of the railroads.

In all of this, sustainable financial planning is essential to ensure that the additional funds are used effectively and efficiently and support economic and climate policy goals in the long term. Reducing bureaucracy, smart prioritization and transparent administration are crucial in implementing this."

Electrical exports still declining

In January 2025, the German electrical and digital industry exported goods worth 19.6 billion euros. This means that exports fell short of the previous year's figure by 1.9% and last year's downward trend in foreign trade in electrical and electronic goods continued, albeit at a slower pace: in 2024, aggregated industry deliveries abroad fell by 3.5% to 246.4 billion euros. "Last year, the industry recorded its first decline since the coronavirus year 2020," said ZVEI Chief Economist Dr. Andreas Gontermann.

Unlike exports, imports of electrical and electronic products to Germany increased again in January 2025, rising by 5.3% year-on-year to €21.5 billion. "This results in a trade deficit of almost two billion euros for January alone," says Gontermann. In 2024 as a whole, electrical imports reached a value of €254.9 billion - a drop of 5.3% compared to 2023.

In January 2025, electrical deliveries to industrialized countries rose by 1.8% year-on-year to 13.1 billion euros.

Very high increases were reported for deliveries to Taiwan (+50.6% to €323 million), Denmark (+48.9% to €332 million), the UK (+27.3% to €1.0 billion) and the USA (+12.7% to €2.1 billion). Exports to Belgium (+4.4% to € 479 million), Austria (+3.0% to € 856 million) and Spain (+1.4% to € 753 million) also increased in January.

Exports to China fall by 28.4%

In contrast, there were slight declines in exports to the Czech Republic (-0.1% to € 832 million), Switzerland (-3.5% to € 676 million) and the Netherlands (-4.5% to € 1.2 billion). The decline in exports to France (-6.6% to € 1.2 billion), Slovakia (-6.9% to € 228 million), Japan (-7.4% to € 255 million) and Italy (-8.2% to € 905 million) was more pronounced.

Deliveries to Sweden fell by double digits in January (-10.5% to € 352 million) and exports to South Korea were down by more than a fifth on the previous year (-21.2% to € 215 million).

In January 2025, German electrical exports to the group of emerging markets fell by 8.7% compared to the same month in the previous year to €6.5 billion.

Exports to India (+15.3% to €260 million) showed significant growth in January, and deliveries to Brazil (+8.4% to €152 million) and Turkey (+4.6% to €343 million) also increased. Exports to Mexico also increased slightly (+0.8% to € 281 million).

In contrast, there were moderate declines in electrical deliveries to South Africa (-1.7% to € 137 million), Thailand (-1.9% to € 96 million), Poland (-3.5% to € 910 million) and Hungary (-3.8% to € 634 million). Exports to Romania (-12.8% to € 401 million) and Malaysia (-16.5% to € 196 million) fell by double digits.

"The drop in January was particularly pronounced for exports to China, which slumped by 28.4% to €1.6 billion, half a billion euros lower than deliveries to the USA," said Gontermann. "However, one reason for this slump is likely to be distortions around the Chinese New Year."

Dates

Contacts

Semiconductors Association
Lyoner Street 9
60528 Frankfurt am Main
Tel. 069/6302-276/-251
Fax 069/6302-407
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Trade Association PCBs Components and Systems
Lyoner Street 9
60528 Frankfurt am Main
Phone 069/6302-437
Fax 069/6302-438
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