The European Commission on July 14 approved €659 million ($751 million) in German state aid to support four first-of-a-kind semiconductor facilities, marking a concrete step toward the EU Chips Act goal of doubling Europe’s share of global chip production to 20 percent by 2030.
Executive Vice President Teresa Ribera said the approval shows Europe is turning the ambitions of the EU Chips Act into action. The four projects span different segments of the semiconductor value chain and are expected to strengthen the EU’s position and autonomy in chip manufacturing.
Germany has been one of the most active EU member states in courting semiconductor investment, with billions in subsidies already committed to Intel, Infineon, and TSMC projects. The newly approved €659M package targets facilities that the Commission deemed first-of-a-kind technologies that would not otherwise be built in Europe without public support.
The approval comes as Europe races to reduce reliance on Asian chip suppliers amid growing geopolitical tensions and supply chain disruptions. The EU Chips Act, adopted in 2023, mobilized more than €43B in public and private investment for the continent’s semiconductor ecosystem.
