The initiative to subsidize the development of the semiconductor industry in Europe has long since turned from a draft law into a ready-made legislative act, in the first half of this month it was approved by local parliamentarians, and this week, so BloombergThe ministers of this geopolitical bloc made their positive decision on the draft law. Applicants can now be granted funding of 43 billion euros to set up chip production in the EU.
Keep in mind that the broader objective of this law is to increase the European Union’s share in the semiconductor manufacturing segment from the current 10% to 20% by 2030. While this draft law passed through the corridors of power, many companies expressed a desire to build chip production plants in Europe, and the main beneficiary is Intel Corporation, which is preparing to build two chip production plants in eastern Germany, organizes their testing and packaging in Poland, and also builds its research centers in different European countries.
Infineon, STMicroelectronics, Broadcom and several other semiconductor companies have expressed their willingness to set up new chip manufacturing companies in Europe. Taiwan’s largest contract chip manufacturer TSMC is currently in the final stages of negotiations to build the first plant in Europe, which could be located in Germany. The focus is on meeting the needs of the local automotive industry. The German authorities are prepared to assume up to half of the project’s total budget of 10 billion euros. They will provide Intel with around 10 billion euros, the total costs amount to 30 billion euros.
Intel’s total investment program for the development of European companies and laboratories amounts to 80 billion euros, so the subsidies provided for in the new law are expected to be distributed relatively quickly to the recipients. The American “Law on Chips” provides applicants with some restrictions regarding activities on the territory of the PRC, but the European legislator did not provide for such formal conditions.