BERLIN, Sept 16 (Reuters) - Germany is working towards building up its semiconductor production industry, German Chancellor Olaf Scholz said on Friday during a discussion about technological competitiveness at a conference in Berlin.

"It's costly but I think it's important," Scholz said at the Ada Lovelace Festival on the future of the internet.

In May, the government announced 14 billion euros ($13.97 billion) in state aid to attract chip makers to Germany. ($1 = 1.0022 euros) (Reporting by Rachel More, Editing by Miranda Murray)