The European Commission has approved Germany to allocate 659 million euros in state aid for four semiconductor manufacturing facilities. “By promoting innovation in the semiconductor industry, we are strengthening our technological sovereignty and Europe’s competitiveness,” said EU Commissioner Teresa Ribera.
The funding will be distributed among four projects. The largest share — 353 million euros — will go to SME Element 3-5 GmbH for the construction of a plant in Basweiler (North Rhine-Westphalia). According to the European Commission, a “unique factory in the world” will be established there, producing high-performance silicon wafers used in the manufacture of microchips, sensors, and automotive electronic components.
Support for key industries
Vishay Siliconix Itzehoe GmbH (“Vishay”) will receive 214 million euros for its plant in Itzehoe (Schleswig-Holstein), where power MOSFETs will be produced for widespread use in the automotive industry. KLA-Tencor MIE GmbH (“KLA”) is allocated 74.4 million euros for a plant in Weilburg (Hesse), which will manufacture high-precision instruments for quality control of semiconductor components in mass production.
Another 17.9 million euros will be allocated to KETEK GmbH for a plant in Munich (Bavaria), which will produce two types of highly specialized chips for industrial sorting and processing systems. The European Commission noted that all projects will receive joint funding from the German federal government and state authorities.
Strengthening the semiconductor supply chain
Project participants have committed to ensuring a positive impact on the semiconductor value chain in the EU and to closely cooperate with universities and research institutions. The European Union aims to bolster its semiconductor industry and plans to increase its share of global chip production to 20% by 2030. Currently, according to the European Commission, it stands at about 10%. In total, EU countries have already approved state support projects for the industry amounting to approximately 14 billion euros.
The EU has strict rules regarding state aid to companies, designed to prevent economically stronger countries from gaining an unfair advantage through massive subsidies that could push competitors out of the market. This is why such programs require mandatory approval from the European Commission.
Source: Der Spiegel
