The European chip law, also known as the European or EU Chips Act, has overcome all bureaucratic hurdles. It took around 1.5 years from the first proposal to adoption by the EU Parliament. 587 MPs have now finally voted for the law, 10 against. 38 abstained.
The last step was just a formality after the EU Council and Parliament had already agreed. Adoption is necessary so that the subsidies that have been negotiated can flow. Nominally, the EU Chips Act contains subsidies of 43 billion euros. However, with the EU Chips Act, EU member states are now also allowed to subsidize more outside of the EU funds. This was not possible before, among other things because of a feared distortion of competition. Only the EU Commission has to approve the respective projects – this should work faster under the new legislation.
Now it’s up to the EU Commission The Commission’s blessing is the last step that the German Federal Government and Intel still have to take so that the construction of the semiconductor works in Magdeburg can be completed. More than 30 billion euros will go into construction, 9.9 billion of which will come from the federal government and the state of Saxony-Anhalt. As Frank Bösenberg, Managing Director of Silicon Saxony, explains on Twitter, Germany is not using EU pots for the planned semiconductor plants, but is paying the sum itself.
Intel boss Pat Gelsinger is of course happy about the finalized European chip law: “That is An exciting day for Europe! Semiconductors are key to competitiveness and growth in the digital economy. Today the EU is sending a strong signal to European companies, investors and partners that Europe is committed to building a competitive semiconductor ecosystem. I congratulate the EU legislators on their good work and I’m excited to see what the EU Chips Act will bring to the European semiconductor sector.With our new investments in Germany and Poland and the expansion of our base in Ireland, Intel is proud to be a partner in these ambitions. ”
In the meantime, Infineon is expanding in Dresden: In addition to the 4 billion euros of its own investment, a subsidy of one billion euros comes from the German budget. Wolfspeed and ZF want to build the “world’s most modern” silicon carbide factory in Saarland, also with financial support.
