EU agrees on semiconductor aid law 59 trillion won

It is implemented by agreement of the European Parliament



[아시아경제 조유진 기자] the European Union (EU) On the 1st (local time), the EU Semiconductor Support Act (ECA) was agreed to invest 43 billion euros (about 58.77 trillion won) in expanding semiconductor production.

The Council of the EU announced this through a press release on its website, and announced that the final draft would be implemented after agreement by the European Parliament.

This bill was introduced in February to solve the semiconductor supply shortage in Europe and achieve technology independence. The plan is to create a fund of 43 billion euros through a public-private partnership, and invest in all directions to ensure semiconductor technology capabilities for cutting-edge processes and create a semiconductor ecosystem.

Of the 43 billion euro fund, 3.3 billion euro will be used to launch the ‘Chip Initiative for Europe’ to support the development and production of semiconductors.

Through this, the EU aims to increase its share of the global semiconductor production market from the current 10% to 20% by 2030.

The amendment agreed by the EU member states has widened the scope of support for industrial semiconductors as well as the production of semiconductors below 5 nanometers.

Cedric Naike, director of Siemens, told the Frankfurter Allgemeine Zeitung (FAZ) in Germany in this regard, “Semiconductors under 16 nanometers account for only 4% of the world market.”

EU Member States have amended legislation to allow many more projects to be supported, both in-house and contract-produced.

This was done by expanding the species of semiconductors recognized as unique in the EU.

Meanwhile, the United States has allocated more than 50 billion dollars (about 65 trillion won) in support through the Semiconductor Act, and is additionally investing 82 billion dollars (about 106 trillion won ‘to win) for research and development, FAZ noted.

Correspondent Cho Yoo-jin

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