EU approves funding for semiconductor research projects 8 billion euros in subsidy support
As reported by Bloomberg, the European Union has sanctioned a public fund subsidy of up to 8.1 billion euros for a semiconductor research program in a bid to bolster Europe’s semiconductor autonomy and stimulate industrial development. The research program will focus on advanced semiconductors. When supplemented by private funds totaling 13.7 billion euros, the total investment within the EU to promote semiconductors approximates 22 billion euros.
Image: wikichip
As part of the European Chip Act, the subsidized semiconductor research program aims to enhance the EU’s chip R&D and manufacturing capabilities, consolidate supply chain security and stability, and augment its competitiveness globally. The EU aspires to account for 20% of global semiconductor production capacity by 2030. Achieving this goal hinges on state subsidies and pools of funds created by private investors for the construction of new semiconductor manufacturing facilities in Europe.
The Important Projects of Common European Interest (IPCEI) on Microelectronics represents a significant step towards European semiconductor independence. The EU seeks to seize control of its destiny amidst the current unsettled geopolitical climate, aiming to establish itself as an industrial powerhouse in future markets by possessing advanced semiconductor facilities.
In recent times, companies such as Intel, Infineon, STMicroelectronics, and GlobalFoundries have all declared investments in Europe, and it’s almost certain that Taiwan Semiconductor Manufacturing Company (TSMC) will establish production facilities in Germany. German Economic Minister Robert Habeck noted that Germany currently hosts 31 projects distributed across 11 regions, a factor that is believed to augment Europe’s influence in the semiconductor sector and ensure value creation and increased employment opportunities.
