March 30, 2023

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EU considers approval of state aid for chip sector on terms – IT Pro – News

The European Union may be able to ease restrictions on government aid to fund new chip factories in the region. This was reported by European Commissioner Margrethe Vestager on Thursday. There will then be “strict competition safeguards” attached to this.

European Commission I mentioned on Thursday It is considering the move because of the “exceptional situation” in the chip sector. The commission also mentions “reliance on a limited number of companies in a difficult geopolitical context.” Most chips are currently produced in Asia and the European Union has been committed to strengthening its chip sector for some time. Tweakers wrote there earlier Dramatic story On.

State aid could be used to “fill potential financing gaps”, specifically to build “first-of-its-kind” European chip factories. Vestager states that “strict competition terms” will accompany any government assistance. The benefits of state aid should continue to spread “widely and indiscriminately” throughout the European economy. State aid is currently already subject to strict european rules, because public funding can distort competition in the European market.

Key European member states such as France and Germany previously called on the European Union to allow unconditional state aid to the chip sector, Bloomberg writes. In their opinion, state aid is needed to help European companies compete with the United States and China. The European Commission did not respond to that request on Thursday.

Other member states, including the Netherlands, last week Letter to the European Commission in which they oppose the use of state aid for mass production or other commercial activities. In their opinion, excessive use of government aid would lead to unfair competition within Europe. Opponents of the initiative argue, for example, that agreeing to unconditional state aid would give an unfair advantage to larger member states, which have more money to give to national companies. Strengthen to give.

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