Germany expects several European countries to pump EUR 50 billion into the chip industry within Europe over the next few years. This would be done on the basis of targeted aid.
This is what Reuters writes based on a statement from Germany. A total of 17 countries within the EU, including Germany and France, would like to cooperate to invest in semiconductors, processors, and other IT matters to catch up with the United States and Asia.
Subsidies to supplement investments
Peter Altmaier, Germany’s Economy Minister, told during a virtual panel discussion with his French counterpart Bruno Le Maire that he expected the project to require an investment of 50 billion. The project will be named Important Project of Common European Interest (IPCEI). Altmaier is not yet sure about the amount, he says it could be lower, like 20 billion. Of the investments, 60 to 80 per cent would come from the participating companies, which would bring EU subsidies to 20 to 40 per cent.
A spokesman for chip manufacturer Infineon Technologies is positive about the development. He stresses that the European Commission must act quickly to strengthen Europe’s competitiveness and build up geopolitical resistance.
Companies that want to claim the subsidies must submit their investment plans to Altmaier by 1 March. Based on those plans, the European Commission will make a decision later this year.
Europe stuck between US and China
Europe is currently the third party in a trade war between the United States and China. European companies are caught between the US, which is banning parts and equipment from China, and China, which is increasingly taking it upon itself to develop products because of these blockades. It is therefore becoming increasingly important for Europe to become as little dependent on these parties as possible.
Tip: ‘European companies victim of trade war between China and USA’