On April 18, E.U. governments and parliament are set to approve the 43 billion euro ($47 billion) plan to enhance the E.U.’s semiconductor sector and catch up with the U.S. and Asia.
Last year, the European Commission introduced the Chips Act to reduce E.U. dependency on U.S. and Asian chips after global supply chain issues impacted European carmakers and manufacturers.
As the U.S. launched its CHIPS for America Act to compete with Chinese technology, the E.U. suggested doubling its chip output to 20% over the following decade.
The individuals said E.U. governments and parliamentarians would convene at the European Parliament’s monthly session in Strasbourg on April 18 to negotiate Act financing and likely reach a deal.
They said the E.U. executive had raised most of the 400-million-euro ($438 million) gap.
The Commission first suggested subsidizing just cutting-edge chip manufacturers. Still, the individuals added that E.U. countries and parliament had widened the scope to include older chips and research and design centers.
Legislators cited Belgium’s IMEC, a nanoelectronics and digital technology innovation center with over 600 important industrial companies, as a fundamental argument for investing more in EU R&D.
Although Intel (INTC.O), enticed by the Chips Act, chose Germany for its giant chip manufacturing complex, smaller E.U. nations felt left out. Funding the full value chain solves this.
With government support, STMicroelectronics and GlobalFoundries (GFS.O) are building a 6.7 billion euro chip facility in France.
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