Spain plans to promote 12billion euros of semiconductor subsidies
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Update time : 2022-08-03 14:59:47
The Spanish government plans to invest more than 12billion euros (US $12.3 billion) to build the domestic semiconductor industry, but it has encountered a major obstacle - few chip manufacturers are willing to accept the challenge.
Informed sources said that the European Union has provided financial support to Spain to offset the impact of the COVID-19 on the economy, but Spain's efforts to promote the chip industry are facing fierce competition from other EU countries for major investors.
People familiar with the matter said that the main challenge facing Spain was to attract companies willing to commit billions of euros in long-term investment. It is reported that compared with Spain, these companies have chosen countries like Germany with mature semiconductor ecosystems, suppliers and talents.
Spain's ambitious efforts are to help achieve the EU's goal of producing one fifth of the world's chips by 2030, compared with about 10% in 2020. According to the chips act of the European Union, the plan allows member states to provide national assistance to some qualified chip manufacturers.
The office of Spanish Prime Minister Pedro Sanchez said in a statement that since the government released its chip investment plan two months ago, chip manufacturers have shown interest in it, but it will take time to make investment decisions. "We are fully confident that the dialogue with chip manufacturers will soon bear fruit."
After facing serious supply chain disruption during the COVID-19, the European Union and the United States are competing to increase chip production, and governments hope to reduce their dependence on Asian suppliers such as China and South Korea. The chip program of the European Union has set off an upsurge among countries with semiconductor industry, putting these countries into competition.
Spain has tried to attract TSMC, but it is expected that the company will choose Germany. Saxony in eastern Germany has formed a huge chip ecosystem. For more than a year, TSMC has been discussing with the German government about the construction of the plant, but it is unlikely to make a decision in the short term.
Spanish economist Sanchez believes that the government's chip project is a way to boost Spain's industrial base. Spain's industrial base has shrunk since the beginning of this century due to increased competition from other countries. This investment is also important for the supply of the Spanish auto industry. The Spanish auto industry is the second largest in Europe, accounting for about 10% of GDP.
Part of Spain's funds will be used for research projects through the EU ipcei, or important projects of common interest to Europe. This allows the government to use state aid for smaller research projects.
According to people familiar with the matter, Spain may also obtain EU funds to accommodate a pilot production line from IMEC, a Belgian research center.
