The European Commission has approved €8.1bn in public funding to support research, innovation, and the first industrial deployment of microelectronics and communication technologies across the value chain.
Alongside public funding, the Important Project of Common European Interest (IPCEI) is expected to unlock a further €13.7bn in private funding for microelectronics and communication technologies.
As part of this IPCEI, 56 companies, including small and medium-sized enterprises (SMEs) and start-ups, will undertake 68 projects.
It was jointly prepared and notified by fourteen Member States, including Austria, Finland, France, and Germany.
The first novel products could be available as early as 2025, with the completion of the overall project set to commence in 2032. Around 8,700 jobs are expected to be created from this.
How the project will enable the green transition
Titled IPCEI ME/CT, the project concerns research and development projects covering microelectronics and communication technologies across the whole value chain. This ranges from materials and tools to chip designs and manufacturing processes.
Margrethe Vestager, Executive Vice-President in charge of competition policy, commented: “Microelectronics and communication technologies are the backbones of any modern electronic device from mobile phones to medical equipment.
“This Important Project of Common European interest is the largest approved and second on microelectronics. Innovation is essential to help Europe’s economy become greener and more resilient.”
She added: “But innovation can come with risks that the market alone is not ready to take. This is why State aid should be made available to fill such a gap.”
These initiatives will enable the green transition by:
- Creating innovative microelectronics and communication solutions; and
- Developing energy-efficient and resource-saving electronics systems and manufacturing methods.
Moreover, they will contribute to the technological advancement of many sectors, such as:
- Communications (5G and 6G);
- Autonomous driving;
- Artificial Intelligence; and
- Quantum computing.
They will also support companies active in energy generation, distribution, and use in their green transition.
Overcoming important market failures of communication technologies
Sometimes, private initiatives supporting breakthrough innovation fail to materialise because of the significant risks such projects entail.
The IPCEI ME/CT project rules enable Member States to jointly fill the gap to overcome these important market failures and ensure that the EU economy at large benefits from the supported investments and limits potential distortions to competition.
Overall, the Commission concluded it:
- Contributes to achieving several EU objectives of a greener, digital, more secure, resilient, and sovereign economy set out in key EU policy initiatives;
- All 68 projects part of the IPCEI are highly ambitious, as they aim at developing communication technologies that go beyond what the market currently offers and will allow major improvements; and
- The IPCEI also involves significant technological and financial risks. Therefore, public support is necessary to provide incentives to companies to carry out the investment.
“This latest IPCEI approved today is yet another demonstration of the EU Chips Act already triggering considerable public and private investment across the European semiconductor value chain: materials to design, equipment to advanced packaging,” explained Thierry Breton, Commissioner for Internal Market.
“By investing in our innovative companies, we are investing in Europe’s technological and industrial leadership in communication technologies, as well as our security of supply and economic security.”
