This article was published on June 9, 2023

EU pours €8B of state aid into chips and microelectronics

The funding will support 56 companies across 14 member states

EU pours €8B of state aid into chips and microelectronics

The EU has approved an €8.1bn state aid package to boost the development of chips, aiming to strengthen the bloc’s microelectronics and comms sector.

The subsidy falls under the framework of “Important Projects of Common European Interest” (IPCEI) — an initiative that provides easier access to public funds.

The IPCEI will undertake 68 projects across 14 member states: Germany, France, the Netherlands, Austria, the Czech Republic, Finland, Greece, Ireland, Italy, Malta, Poland, Romania, Spain, and Slovakia.

It will involve 56 companies in total — from major players such as Airbus and ASML, to startups and SMEs — and over 30 associated partners located in five additional member states.

The projects will target the research and development of “resource-efficient technologies and components,” including chips, sensors, and processors; new materials and tools; and chip design and manufacturing processes.

“Microchips are the backbone of innovation and of Europe’s industrial competitiveness in a digital world,” said Margrethe Vestager, Executive VP in charge of competition policy. “We need to be pioneers and develop truly innovative solutions and their first industrial deployment in Europe.”

The IPCEI’s aim is to use the upcoming technologies for the advancement of multiple sectors, including 5G and 6G telecoms, autonomous driving, AI, and quantum computing.

The first products may reach the market already in 2025, but the projects’ overall completion is expected in 2032. By that point the IPCEI hopes to have unlocked an additional €13.7bn in private investments, bringing its total impact to €22bn.

Meanwhile, the EU is finalising its Chips Act with the aim to boost domestic semiconductor chip production and capture at least 20% of the global market share by 2030.

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