EU Injects €8B in State Aid to Boost Chips and Microelectronics Industry

The European Union has approved an €8.1bn state aid package to fund the development of chips in a bid to enhance the bloc’s microelectronics and communications sector. The funding was granted under the Important Projects of Common European Interest initiative, which aims to give easier access to public funds. A total of 68 projects will be undertaken across 14 member states with 56 companies and over 30 associated partners located in five member states. The projects will focus on resource-efficient technologies and components, including chips, sensors, and processors, new materials and tools, as well as chip design and manufacturing processes. A key objective of the initiative is to advance multiple sectors, including 5G and 6G telecoms, autonomous driving, AI, and quantum computing. The projects are expected to be completed by 2032 and may attract an additional €13.7bn in private investments, bringing the total impact to €22bn. The EU is also finalizing its Chips Act to increase semiconductor chip production in the region and aims to capture at least 20% of the global market share by 2030.