EU approves €227 million for Austrian semiconductor plant

News The project is part of the EU’s plan to strengthen Europe’s semiconductor industry and reduce reliance on foreign suppliers The European Commission has approved €227 million in funding to help Austrian semiconductor manufacturer ams Osram build a manufacturing plant in Premstätten, Austria. The new facility will produce wafers used in various industries, including automotive, consumer electronics, and healthcare. It will integrate advanced technologies to improve chip performance and reliability. Expected to be fully operational by 2030, the plant will be the first in Europe to produce Grade 0 automotive-certified chips, which which offer access to highly customisable products. It will also allow other semiconductor companies to use its facilities, boosting collaboration in the sector. With a total cost of €567 million, the project relies heavily on EU support. In return, ams Osram has agreed to strengthen Europe’s semiconductor supply chain, develop a unique manufacturing facility, prioritize production during supply shortages, and invest in workforce training. “This Austrian project will have wide positive effects for the European semiconductor ecosystem. It will support the development of a strong and resilient digital economy in Europe, ensure a secure supply of semiconductors for the industry and help create high-skilled employment while limiting any potential distortion of competition,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition in a press release . The European Commission reviewed the funding under EU state aid rules and found it necessary to attract investment that might not happen otherwise. It determined that the aid would not significantly impact market competition but would provide long-term benefits for Europe’s semiconductor industry. This decision follows similar funding approvals in Italy, France, and Germany. Keep up to date with the latest international telecoms news direct to your inbox from Total Telecom Also in the news: Eutelsat, Mediatek, and Airbus successfully trial 5G NTN over LEO satellites EU commits €8 billion to strengthen submarine cable security Vodafone using drones to plug holes in damaged networks