The European Commission has approved a €227m Austrian initiative to support ams Osram in constructing a state-of-the-art wafer manufacturing facility in Premstätten.
This initiative is a major step toward strengthening Europe’s semiconductor supply chain, enhancing resilience, and advancing technological autonomy.
The investment aligns with the European Chips Act, reinforcing Europe’s role in global semiconductor production.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, stated:
“This Austrian project will have wide positive effects on the European semiconductor ecosystem.
“It will support the development of a strong and resilient digital economy in Europe, ensure a secure supply of semiconductors for the industry and help create high-skilled employment while limiting any potential distortion of competition.”
Strengthening European semiconductor independence
Semiconductors power modern technology, from automobiles to industrial equipment and medical devices.
Europe has long relied on foreign chip manufacturers, particularly in Asia and the United States.
Recent global supply chain disruptions have highlighted Europe’s dependency on semiconductor imports, affecting industries from automotive production to consumer electronics.
By investing in local wafer manufacturing, Europe can reduce reliance on external suppliers, ensuring stability and security in critical industries.
Additionally, developing a robust semiconductor sector will drive economic growth, create high-tech jobs, and position Europe as a global leader in chip innovation.
With countries like the US and China making massive investments in semiconductor production, Europe must accelerate its efforts to remain competitive.
The approval of Austria’s aid package marks a strategic move to localise semiconductor production, reduce supply chain vulnerabilities, and enhance technological sovereignty.
The Austrian wafer manufacturing facility
The EU has announced plans to support ams Osram in establishing an advanced wafer manufacturing plant in Premstätten.
This facility will produce high-performance semiconductor wafers for applications in multiple industries, including automotive, consumer electronics, industrial solutions, and healthcare.
The plant will integrate advanced technologies such as Complementary Metal Oxide Semiconductors (CMOS) for transistors and Through Silicon Via (TSV) techniques to enhance vertical electrical connections in chips.
Additionally, optical filters will be incorporated to optimise chip performance. The innovative integration of these technologies will enable the production of Grade 0 automotive-qualified products, known for their superior reliability and customisability.
European Chips Act: A framework for growth
Adopted in 2023, the European Chips Act lays the foundation for large-scale semiconductor investments across the continent.
Recognising the crucial role of semiconductors in digital and industrial transformation, the Act aims to enhance supply chain resilience and stimulate economic growth.
With the implementation of this Austrian initiative, Europe is taking a significant step toward securing its semiconductor future.
The ams Osram facility is expected to be fully operational by 2030, providing a substantial boost to local manufacturing capabilities and job creation.
Economic and strategic benefits
The €227m state aid grant will support a total investment of €1.4bn by ams Osram. The facility will also be partially accessible to other semiconductor companies, fostering collaboration and innovation within the European semiconductor ecosystem.
As part of the funding agreement, ams Osram has committed to:
- Contributing to the broader EU semiconductor value chain.
- Establishing Europe’s first integrated wafer manufacturing facility.
- Implementing priority-rated orders during supply shortages in line with the European Chips Act.
- Investing in education and training programmes to develop a highly skilled semiconductor workforce.
A milestone for Europe’s semiconductor future
Austria’s investment in wafer manufacturing is a crucial step in Europe’s quest for semiconductor independence.
By supporting ams Osram’s cutting-edge facility, the EU is strengthening its supply chain while fostering innovation and technological leadership in the semiconductor industry.
As Europe continues to advance its semiconductor capabilities, investments like this will be key to securing a sustainable and competitive position in the global technology landscape.
