The initiative to subsidize the development of semiconductor industries in Europe for a long time was transformed from a bill into a ready-made legislative act, in the first half of this month it was approved by local parliamentarians, and this week, according to Bloomberg, the ministers of this geopolitical bloc made their positive decision on the bill. Now €43 billion in subsidies for the development of chip production in the EU can be provided to applicants.
Recall that the enlarged goal of this law is to increase the share of the European Union in the semiconductor production segment to 20% from the current 10% by 2030. During the time that this bill was walking through the corridors of power, many companies expressed a desire to build chip production facilities in Europe, and the main beneficiary is considered to be Intel Corporation, which is preparing to build two chip production facilities in the eastern part of Germany, organize their testing and packaging in Poland, and also develop their research centers in different European countries.
Infineon, STMicroelectronics, Broadcom and some other companies in the semiconductor sector have expressed their readiness to build new enterprises for the production of chips in Europe. Taiwan’s largest contract chipmaker, TSMC, is now in the final stages of negotiations to build the first facility in Europe, which could be located in Germany. It will be focused on serving the needs of the local automotive industry, from the total budget of the project of €10 billion, the German authorities are ready to pay up to half of the costs. They will allocate about €10 billion to Intel for a total cost of €30 billion.
Intel’s total investment program for the development of European enterprises and laboratories is worth €80 billion, so the subsidies provided for by the new law will most likely be distributed among recipients fairly quickly. The American “Law on Chips” imposes some restrictions on applicants in terms of activities in the territory of the PRC, but European legislators did not provide for such formal conditions.
If you notice an error, select it with the mouse and press CTRL + ENTER.