The strong dependence on foreign countries for digital goods and services is likely to increase in the coming years.

In a Bitkom survey of more than 600 companies with 20 or more employees from all sectors, 55% of companies stated that they expect the situation to worsen. 36% expect no change, while only 6% anticipate less dependence in five years' time. China and the USA are the dominant suppliers. 62% of companies consider themselves to be heavily dependent on foreign countries, with a further 32% describing their situation as "somewhat dependent", according to the digital association in Berlin on Wednesday.

Bitkom President Ralf Wintergerst said that Germany must become a center of the semiconductor industry as a first step. "We need a turnaround, and we need it now." The "traffic light" government must put this at the top of the agenda in the second part of its term of office. In the survey, 86% of companies called for more investment in key technologies, such as artificial intelligence (AI). The German government had supported new chip factories in Germany with high subsidies - for example for Intel and Infineon - which was the right thing to do. Germany faces strong international competition in this area. The federal government's current budgetary difficulties should not stand in the way of this.

In the solar industry, where Germany is also heavily dependent on imports from China, the Swiss company Meyer Burger announced that it was preparing to close its module production in Germany. In the absence of political measures to create fair competitive conditions, the company intends to take action against the current losses. One part of the plan is the closure of the plant in Freiberg, Germany, which employs around 500 people, at the beginning of April. This is the largest operating solar module production facility in Europe.

WORRIES MAINLY ABOUT CHINA - BAD REPORT FOR TRAFFIC LIGHTS

In the Bitkom survey on digital goods and services, 69% of companies were concerned about dependence on China. In the case of the USA, 38 percent said the same. Without imports from abroad, only seven percent of companies would be able to survive for more than two years. The dependencies are particularly high for end devices such as smartphones or laptops, as well as components such as chips or sensors.

The companies are disappointed with the traffic light government. In its efforts to become less dependent on foreign countries, it only receives an average grade of 5, i.e. poor. "The figures must be a wake-up call for politicians," says Wintergerst. The USA is much more open to new technologies and more focused on its own interests, whereas Europe is more skeptical and acts much more often with bans. Politicians need to attract more IT specialists, digitize administration, allow greater use of data and reduce bureaucracy. In addition to AI, quantum computers and greater IT security should also be specifically promoted. Greater write-off options could encourage more investment in digitalization. "The establishment of digital sovereignty must become the core of German economic policy in future," demanded the Bitkom President.

(Report by Christian Krämer, edited by Christian Rüttger. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)