The European Commission said Thursday that 14 EU countries will provide public support of up to 8.1 billion euros (currently about RMB 61.803 billion) to 56 companies working together on microelectronics and communications technology projects.
EU executives said the projects involve “R&D projects covering the entire value chain of microelectronics and communication technologies, from materials and tools to chip design and manufacturing processes”.
In April, the EU agreed to a program worth 43 billion euros (currently about RMB 328.09 billion) to boost the competitiveness of its semiconductor industry in an attempt to catch up with the United States and Asia.
The plan, known as the European Chips Act, aims to increase the EU’s share of global chip output from the current 10 percent to 20% by 2030, and comes after the U.S. announced its CHIPS for America Act.
The European Commission initially proposed to fund only the most advanced chip factories, but EU countries and parliaments have expanded the scope to cover the entire value chain, including older chip and research and design facilities.
The agreement was welcomed by U.S. chipmaker Intel, which will receive German subsidies for building a factory in Germany. “The European Chip Act will direct investment where it is most needed — in manufacturing capacity, skills and R&D. This goal has strong and broad political support and shows that the EU is serious about securing its future prosperity,” said Hendrik Bourgeois, Intel’s vice president of European government affairs.
