European leaders are keen to avoid dependence on other regions of the world for the supply of semiconductors — indispensable in an array of electronics from computers, to cars and and even missiles.
The approval allows the German federal government to provide €5 billion ($5.5 billion) of financial support for the new European Semiconductor Manufacturing Company (ESMC).
“The measure will strengthen Europe’s security of supply, resilience and digital sovereignty in semiconductor technologies,” a commission statement said. “The measure will also contribute to achieving the digital and green transitions.”
“The new large-scale manufacturing facility supported under the measure will deliver high-performance chips,” it added.
The Commission said the ESMC was a joint venture between the Taiwanese company and three European firms — Germany’s Bosch and Infineon and the Netherlands’ NXP.
Brussels’ ruling said the advantages were significant with little in the way of a downside and noted that the sum provided in assistance was not excessive