EU announces launch of 8.1 billion euro microelectronics project in conjunction with 56 companies

CTOnews.com, June 8 (Xinhua)-- 14 EU countries will provide public support of up to 8.1 billion euros (CTOnews.com Note: currently about 61.803 billion yuan) to 56 companies cooperating in microelectronics and communications technology projects, the European Commission said on Thursday.

EU executives said the projects involved "R & D projects ranging from materials and tools to chip design and manufacturing processes covering the entire value chain of microelectronics and communications technologies".

In April, the EU agreed to a plan worth 43 billion euros (currently about 328.09 billion yuan) to boost the competitiveness of its semiconductor industry in an attempt to catch up with the United States and Asia.

The plan, known as the European Chip Act (European Chips Act), aims to increase the EU's share of global chip production from 10 per cent today to 20 per cent in 2030, following the announcement of the US Chip Act (CHIPS for America Act).

The European Commission initially proposed funding only for state-of-the-art chip factories, but EU countries and parliaments have expanded to cover the entire value chain, including older chips and research and design facilities.

Us chipmaker Intel welcomed the agreement, which will receive German subsidies to build a factory in Germany. " The Eurochip Act will direct investment to where it is most needed-manufacturing capacity, skills and research and development. There is strong and broad political support for this goal, indicating that the EU is serious about safeguarding its future prosperity, "said Hendrik Hendrik Bourgeois, vice president of European government affairs at Intel.