The European Commission granted 8.1 billion euros ($8.7 billion) of state aid for microelectronics and communication technology projects as part of the EU’s technological innovation push.
On Thursday, the EU executive said 14 member countries might aid 68 projects involving Airbus (AIR.PA), ASML (ASML.AS), and Ericsson (ERICb.ST). The initiatives qualify for simpler EU state aid as an Important Project of Common European Interest (IPCEI). They follow 2018 IPCEI initiatives in the same sector.
Fifty-six firms collaborate on materials, tools, chip design, and manufacturing projects. They target 5G and 6G telecoms, autonomous driving, AI, and quantum computing.
The project is anticipated to finish in 2032, while the first unique products may launch around 2025. We must pioneer. “We need truly innovative solutions and their first industrial deployments in Europe,” Commission Vice President Margrethe Vestager said at a news conference.
EU industry head Thierry Breton said the initiatives would accelerate the creation of a European supply chain for radar and space components, electric vehicles, and cutting-edge AI chips. The Commission expects 13.7 billion euros in private investment from the projects. GlobalFoundries, Orange, Analog Devices, Continental Automotive, and Bosch participated.
The projects include Renault (RENA.PA), NXP (NXPI.O), STMicroelectronics (STMPA.PA), Wacker Chemie (WCHG.DE), and Infineon (IFXGn.DE).
Austria, Czech Republic, Finland, France, Germany, Greece, Ireland, Italy, Malta, the Netherlands, Poland, Romania, Slovakia, and Spain provide governmental help. Successful ventures can claw back state aid.