The move by EU executives can be read as a response to the US$52 billion chip law, which aims to increase competitiveness with China, and comes at a time when global chip shortages and supply chain bottlenecks are wreaking havoc on the car. Makers, medical service providers, telecom operators and others.

Commission President Ursula von der Leyen wrote in a statement to the media that the European chip law “will enable 15 billion euros of additional public and private investment by 2030”. This will complement the €30 billion of public investment already planned under NextGenerationEU, Horizon Europe and national budgets. And these funds will be complemented by more long-term private investment.” Von der Leyen announced that for innovative chip factories, the EU will relax state aid rules, which are aimed at preventing illegal and unfair subsidies from EU countries to companies. So we are adapting state aid rules We have, under strict conditions.This will allow – for the first time – public support for “first-of-its-kind” European production facilities that benefit Europe as a whole.

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At the moment, many countries of the European Union are ordering the American chip maker Intel, which has not yet announced where it will set up a huge European factory. Recently announced work on a giant components plant in Ohio, United States. No wonder Intel has welcomed EU pressure to manufacture chips. “We are currently considering a significant expansion of our presence in Europe and expect EU chip law to facilitate these plans,” the company said in a statement.

Source: Reuters