The EU expects around 43 billion euros to be spent to perk-up the semiconductor ecosystem in the region that comprises production and research
After several rounds of heated discussion, the European Union nations decided to go after a 43-billion-euro ($44.4 billion) investment scheme to kick-start the region’s chip production by wiping out a major challenge in its plan to boost the high-tech industry. According to some anonymous sources, the agreement was finalized on Wednesday by some of the key EU ambassadors.
Officials familiar with the matter highlighted that the deal would expand the chip plants in a large-scale manner and qualify for state assistance. But there are a couple of hurdles that are preventing all the automotive firms from qualifying for the incentives. Several countries in the EU demanded for funds earlier this year, which are yet to be approved by the state authorities. The latest agreement will also push for more safeguards when the executive wings of the EU can set off an emergency and intervene in firm’s supply chains.
A couple of EU officials who wished to be unnamed stated that the most serious issue in this matter is the utilization of EU funds. Back on Wednesday, the member states decided not to reallocate 400 million euros of research funds for semiconductors because they feel that this fund will only provide advantages to big countries like Germany that have gigantic operations. The commission was asked by the ambassadors to find the money somewhere else.
In a meeting next month, the EU ministers are speculated to ratify the deal backed on Wednesday. But, before the three institutions can clinch a final agreement, the European parliament is required to sanction its own plan. According to an exclusive report of Bloomberg, the EU has an ambitious goal of producing 20 percent of the world’s semiconductors by 2030.
During the first half of this year, a EU Chips Act was unleashed by the European Union, which expects around 43 billion euros to be spent to perk-up the semiconductor ecosystem in the region that comprises production and research. The Bloomberg report also added that the plan will not be finalized until the next year, but in the meantime, a number of well-known firms have announced plans to begin their chip plants in the region, including Intel, GlobalFoundries, STMicroelectronics and Infineon Technologies.
