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EU Pushes for Cutting-Edge Chip Plants, Security of Supply

  • Bloc to add obligations on companies that receive state aid
  • Breton says EU will invest similar amount to U.S. Chips Act

The European Union is gearing up to put potentially billions of euros in state aid toward massive, cutting-edge semiconductor production sites -- with strings attached.

One of the key goals of the EU’s upcoming Chips Act is to attract investment for the projects, so called “mega fabs.” To win funding, they must be first-of-a-kind in Europe, ensure the security of supply and commit to future investment in leading edge technology, Thierry Breton, the EU’s internal markets commissioner, told a group of reporters on Friday. The EU will publish its proposal on Feb. 8.