The European Commission has officially approved the second Important Project of Common European Interest (IPCEI) for microelectronics, with a budget of €21 billion. This project will focus on energy-efficient technologies and encompass 68 individual projects, spanning a wide range of areas from sensors to 5G and automotive technology. The main objective of the IPCEI is to develop groundbreaking solutions and drive innovation in Europe’s microelectronics industry.
By fostering research, development, and production capabilities in the chip sector, the project aims to address the challenges posed by the green and digital transitions. It is projected that the IPCEI will generate approximately 8,700 highly skilled jobs, contributing to the growth and competitiveness of Europe’s microelectronics sector.
This approval comes as a follow-up to the success of the first IPCEI agreed upon in 2018. The previous IPCEI resulted in significant advancements in microelectronics, particularly witnessed in Germany and Austria, where the expansion of Infineon and Bosch fabs in Dresden, as well as sub-10nm lithography optics from Carl Zeiss, took place.
The European Commission’s decision to greenlight the IPCEI signifies a commitment to enhancing Europe’s own research, development, and production capabilities in the microelectronics industry. State aid will be provided to companies involved in the projects, including the establishment of joint ventures and the construction of new facilities.
In addition to the IPCEI, the European Union has implemented other measures to support the microelectronics sector. Notably, the European Chips Act focuses on research, development, and innovation support, bridging the gap between research and production and streamlining procedures for the construction of wafer fabs and assembly plants.
The IPCEI was jointly prepared and notified by 14 member states, including Austria, France, Germany, Italy, and Spain. These member states will contribute up to €8.1 billion in public funding, expected to leverage an additional €13.7 billion of private investments. A total of 56 companies, encompassing small and medium-sized enterprises as well as startups, are involved in the IPCEI, making it the largest of its kind among the six approved in the region thus far.
The approved IPCEI aims to drive research and development in innovative and resource-efficient technologies and components, such as chips, processors, and sensors, which can be integrated into various applications and industries. The project is organized into four interconnected workstreams: “Sense” focuses on novel sensors, “Think” on processors and memory chips, “Act” on efficient and high-performance components, and “Communicate” on rapid and secure communication technologies.
The European Commission ensures that the proposed public support for the IPCEI is appropriate and limited to the necessary amount. A claw-back mechanism has been put in place, requiring large beneficiaries to return part of the aid received if their projects exceed profitability expectations. Furthermore, the Commission emphasizes the importance of sharing the innovative results beyond the participating companies and countries, promoting conferences, publications, access to facilities, testing kits, and licensing of intellectual property rights.
The European Commission is actively collaborating with member states on four upcoming IPCEIs, focusing on health, cloud, hydrogen, and other key technologies. These initiatives aim to support innovation, cooperation, and economic growth within the European Union
