The European Commission will relax financing rules for semiconductor plants, as the region seeks to boost its semiconductor industry and reduce its dependence on American and Asian chips.
The Commission’s move aims to alleviate a global chip shortage and supply chain problems that have hampered production for automakers, healthcare providers, telecommunications providers and many other sectors.
The European Chips Act will “enable 15 billion euros ($17 billion) in additional public and private investment by 2030,” Commission President Ursula von der Leyen said in a statement.
“This will come on top of 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets. And these funds are set to be matched by further long-term private investments,” she said, referring to ongoing EU projects.
The EU’s move channels the $52 billion U.S. Chips Act targeted to boost competitiveness with China.
EU Commission President Ursula Von der Leyen said the bloc would relax state aid rules to prevent illegal and unfair subsidies from EU countries for innovative chip plants.
These plants could receive more state support, said EU digital chief Margrethe Vestager, as the region aims to double its global market share in semiconductors to 20% by 2030.
She also warned EU governments against unfair investment promotion strategies.
Finally, this also coincides with the EU country’s move to attract U.S. chipmaker Intel, which will soon announce where it will build its European mega-plant, triggering a fierce subsidy race.
For more information, read the original story in Reuters.