The Spanish government says the facility will be built using EU funding.

Cisco Systems will open a new semiconductor chip design center in Barcelona, according to Reuters. The plan to open the new facility was announced by the office of Prime Minister Pedro Sanchez on Thursday, the report says.

Sanchez’s office said that the project will be funded under Spain’s PERTE Chip plan of government subsidies for semiconductor research and development. The PERTE plan offers €12.25 billion in funding up until 2027. The plan uses the European Union’s pandemic relief funds.

Spain, a ‘key player’

“Spain is becoming a key player in achieving the EU’s goal of reaching 20 percent of the global chip market by 2030”, Sanchez said after meeting with Chuck Robbins, the chief executive of Cisco.

“Technology has the ability to help countries further their social and economic development and move even closer to an inclusive future for all”, Robbins added. “Today’s announcement reinforces Cisco’s commitment to support the digital ecosystem in Spain and across Europe.”

Europe is seeking to reinforce its own chip industry and reduce its dependence on US and Asian supply, triggered by a global shortage of semiconductors and supply chain bottlenecks.

The EU Chips Act aims to create an innovation ecosystem in the EU, connecting world-class research, design and testing capacities, creating knowledge jobs and fostering economic growth. The new Cisco facility in Barcelona will support the EU’s efforts in this area.