The European Union (EU) is set to move forward with its $47 billion European Chips Act, which will provide subsidies for the chip sector. This plan comes from increasing competition from outside countries, such as China and Taiwan in the semiconductor industry. The EU believes this subsidy program will help create jobs, spur innovation, and increase Europe’s global competitiveness in the chip market.
In order to qualify for these subsidies companies must demonstrate their commitment to research and development activities within Europe. They must also prove they are investing in advanced manufacturing processes or training programs related to chipsets or microprocessors. Companies that meet these criteria can receive up to €1 billion per year over five years from 2021-2026 depending on their size and scope of operations within Europe.
This act is part of a larger effort by the EU Commission called “Europe Fit For The Digital Age” which aims at creating an innovative digital ecosystem across all sectors including healthcare, energy, transport, etc., through investment into emerging technologies like AI/ML/IoT, etc. It hopes that with increased incentives it can attract more businesses to develop cutting-edge technology solutions within Europe instead of relying on foreign firms outside its borders for technological advancement.
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