The European Commission officially approved a state aid plan from the German government on Tuesday, which will provide financial subsidies totaling 659 million euros (approximately US$751 million) to four "first-of-its-kind" semiconductor production facilities.
The EU stated that this move aims to further consolidate the EU's core position in this key field and enhance its strategic autonomy by strengthening the semiconductor value chain.
EU Executive Vice President Teresa Ribera commented that the four new projects approved today fully demonstrate that Europe is committed to transforming the ambitious goals of the EU Chip Act into substantive industrial actions. This subsidy aims to support relevant companies in building chip manufacturing bases with advanced technical capabilities in Germany to cope with the increasingly prominent supply chain security challenges in global technology competition.