EU Nods $8.7 Billion of State Aid For Tech Innovation Projects By CIOTechOutlook Team

EU Nods $8.7 Billion of State Aid For Tech Innovation Projects

CIOTechOutlook Team | Friday, 09 June 2023, 03:08 IST

In an effort to keep up with technological advancement, the European Commission has approved 8.1 billion euros ($8.7 billion) in state aid for microelectronics and communication technology initiatives.

As per the EU executive, 14 member nations might fund 68 initiatives including businesses like Airbus, ASML, and Ericsson.

As Important Projects of Common European Interest (IPCEI), the projects are now eligible for fewer restrictions on EU state aid. They follow a previous round of IPCEI projects in the same industry that were authorised in 2018.

56 firms are involved in the initiatives, which involve research and development on tools and materials as well as chip design and production techniques. Along with autonomous driving, artificial intelligence (AI), and quantum computing, they focus on 5G and 6G telecommunications technology.

While the project as a whole is anticipated to be finished by 2032, the first innovative products might hit the market as early as 2025.

"We need to be pioneers. We need to develop truly innovative solutions and of course their first industrial deployments in Europe," Commission Vice President Margrethe Vestager added.

The projects, according to EU Industry Commissioner Thierry Breton, would hasten the adoption of electric vehicles, the establishment of a European supply chain for parts used in radar and space applications, as well as the creation of cutting-edge AI chips.

The projects are expected to bring in an additional 13.7 billion euros in private investment, according to the Commission. GlobalFoundries, Orange, Analogue Devices, Continental Automotive, and Bosch are among of the additional partnering businesses.

Participating in the projects are Renault, NXP, STMicroelectronics, Wacker Chemie, and Infineon.

Austria, the Czech Republic, Finland, France, Germany, Greece, Ireland, Italy, Malta, the Netherlands, Poland, Romania, Slovakia, and Spain are the nations offering the state aid.