The European Commission has formally approved €227 million to aid the construction of an Austrian semiconductor plant by ams Osram. The facility, located in Premstätten, Austria, aims to bolster the European semiconductor industry. By reducing reliance on foreign suppliers, it aligns with the EU’s strategic goals.
The plant will produce wafers crucial for sectors like automotive, consumer electronics, and healthcare. Integrating cutting-edge technologies, it will enhance chip performance and reliability. The plant anticipates full operational capabilities by 2030. Notably, it will be the first in Europe to manufacture Grade 0 automotive chips. This will provide access to highly customizable products and foster sector collaboration as other companies can utilize its facilities.
The total project cost is €567 million, with EU support being vital. In return for this support, ams Osram committed to reinforce the European semiconductor supply chain. The company will create a unique manufacturing facility, prioritize production amid supply shortages, and invest in workforce training.
Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition, emphasized the project’s benefits. “This Austrian project will have wide positive effects for the European semiconductor ecosystem,” she said. It is expected to support a robust digital economy, ensure a secure semiconductor supply, and create high-skilled jobs while maintaining fair competition.
The EU’s decision followed a thorough assessment under state aid rules. The commission concluded the funding necessary to stimulate otherwise unlikely investment. It deemed the investment would not distort market competition, instead offering long-term advantages for the European semiconductor industry. Similar funding initiatives have been approved in Italy, France, and Germany, indicating a broader EU strategy.