EU approves 659 million euro support for Germany's semiconductor production

The European Commission (EC) has approved a public financing program prepared by Germany to support semiconductor production. Under the decision, a total of 659 million euros in support can be provided to four facilities to be established in Germany.

According to the Commission's statement, the program was found to be compatible with the EU's state aid rules. The support aims to increase semiconductor production capacity in Europe, strengthen the supply chain, and contribute to the Union's technological autonomy in this field.

It was reported that the funding will be provided by the federal government and state administrations in Germany. It was stated that the investments to be supported will be among the first pilot facilities to be established in relevant fields in Europe.

Semiconductors are considered critical for numerous sectors, ranging from automotive and defense to communication infrastructure and consumer electronics. In recent years, Europe has been implementing various support mechanisms to reduce its dependence on global chip supplies and increase its production capacity.

Public support provided by member states to companies or projects in the EU is subject to Commission oversight regarding whether it distorts competition and its compliance with public interest. Member states can only implement such support within the framework of EU rules.

News Source: 12punto