Leading research laboratories in Europe, including Belgium’s imec, are preparing to receive significant financial support amounting to €2.5 billion ($2.72 billion) under the European Chip Act. The funding, announced on Wednesday, will facilitate the establishment of a pilot line dedicated to the development and testing of advanced computer chips.
The Chip Act, announced by the European Union with a budget of €43 billion in 2023, aims to support the local chip manufacturing industry and responds to similar initiatives by China, the United States, and other countries seeking to strengthen semiconductor sectors following shortages during the COVID pandemic.
Imec, headquartered in Leuven, Belgium, will host a pilot line for chips below 2 nanometers and provide a platform for European industry players, academic institutions, and emerging entrepreneurs to access the most advanced chip manufacturing technologies. The cost of such technologies is often too high for individual organizations to afford for testing or development purposes.
While major chip manufacturers like TSMC, Intel (NASDAQ: INTC), and Samsung (KS: 005930) are set to begin commercial production of 2-nanometer chips in their facilities costing up to €20 billion this year and the next, the European R&D line will focus on developing even more sophisticated chip generations. This line will be equipped with tools from both European and international equipment and material companies.
Luc Van den Hove, CEO of imec, emphasized the importance of the investment, stating, “This investment will double our volumes and learning speed, boost our innovation pace, strengthen the European chip ecosystem, and support economic growth in Europe.” He also noted that the NanoIC pilot line will support various industries across Europe, including automotive, telecommunications, healthcare, and more.
The financing combines contributions totaling €1.4 billion from various EU programs and the Flemish government in Belgium, with an additional €1.1 billion coming from industry participants, including leading equipment manufacturer ASML (AS: ASML).
Other research institutes joining the initiative include CEA-Leti from France, Fraunhofer from Germany, VTT from Finland, CSSNT from Romania, and the Tyndall Institute from Ireland.
So far, only STMicroelectronics has received approval for €2.9 billion in aid from France for a new facility in Crolles. Meanwhile, Intel and TSMC are awaiting approval from the EU to receive billions of euros in aid from the German government to begin construction on facilities in Magdeburg and Dresden later this year.
At the time of the announcement, the exchange rate was 1€ = $1.0857.
Source: investing.com
