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Spain Short on Takers for $12 Billion in Semiconductor Subsidies

  • Sanchez government looking to distribute EU recovery funds
  • Europe aiming to produce a fifth of the world’s chips by 2030

The Spanish government’s plan to pour more than 12 billion euros ($12.3 billion) into building a domestic semiconductor industry from scratch has run up against a major problem: chipmakers ready to take on the challenge are few and far between.

Financed by European Union cash allocated to offset the economic impact of the Covid-19 pandemic, Spain’s chips push is being hampered by stiff competition from other EU countries to win over major investors, according to people familiar with the situation.