The European Union has provided 8.1 billion euros to support European chip production. That money, in turn, should attract investment from the private sector.
The European Commission has approved grants worth 8.1 billion euros. The money is intended to boost European production of microchips. The Commission estimates that the new €8.1 billion will trigger €13.7 billion in private investment. Europe, for example, expects the chip industry to receive a total injection of $22 billion by 2032.
The money is intended for 68 projects in fourteen European countries: Austria, Czech Republic, Finland, France, Germany, Greece, Ireland, Italy, Malta, Netherlands, Poland, Romania, Slovakia and Spain. However, the benefits of the funded projects must be felt throughout the EU.
Not part of the Chips Act
The money comes on top of the €3.3 billion previously earmarked under the chips law: a budget that many say is far too low. The chips law must pump a total of 43 billion euros into the European chip industry. However, the now approved 8.1 billion are within the framework of the Important projects of common European interest (IPCEI) and does not belong to it.
The EU has found itself lagging behind when it comes to home-grown chip production, even though microchips are a very valuable strategic asset. That’s set to change with the Chips Act and this new IPCEI investment. The aim is to bring 20% of world production to Europe by 2030. That won’t be easy, however, as the US also wants a bigger slice of the pie. In addition, the quantities involved in the manufacture of microchips are immense. For example, a planned Intel factory in Germany would already cost at least 20 billion US dollars.
Source: IT Daily
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