EU approves 288m aid for German chip supply chain projects

The European Commission has given the green light to €288 million in German State aid for two semiconductor supply chain projects aimed at enhancing Europe’s chip manufacturing capabilities. This funding will be directed towards supporting new facilities from Carl Zeiss and Zadient Materials Europe GmbH, focusing on advanced lithography equipment and ultra-pure silicon carbide materials.

This decision is part of the EU’s broader initiative to bolster resilience and decrease reliance on foreign semiconductor suppliers as outlined in the European Commission Chips Act strategy.

For readers of eeNews Europe, this announcement underscores the ongoing public investment in Europe’s semiconductor ecosystem, particularly in areas beyond chip fabrication facilities. It also emphasizes the increasing opportunities for equipment manufacturers, materials suppliers, and research collaborations throughout the region.

Zeiss Expands EUV Optics Production

Germany is set to allocate €222 million to Zeiss for its ‘HNA@SCALE’ project in Oberkochen, Baden-Württemberg. The facility will be responsible for producing the next generation of extreme ultraviolet (EUV) optical columns utilized in EUV lithography systems manufactured by ASML.

EUV lithography remains crucial for the production of cutting-edge semiconductors used in various applications such as AI systems, high-performance computing, and autonomous driving.

According to the Commission, this project signifies a pioneering facility in Europe that would likely not have materialized at the same scale without public backing.

Zadient Develops Silicon Carbide Materials Plant

A separate grant of €66 million will be allocated to support Zadient’s ‘Sic-Pro’ project in Bitterfeld, Saxony-Anhalt. The company aims to construct a factory that will produce ultra-pure silicon carbide (SiC) semiconductor source materials.

This project involves a circular production system designed to recover and reuse process gases during manufacturing. The Commission noted that this approach is innovative within Europe and has the potential to enhance material quality, energy efficiency, and long-term production costs.

Both companies have also pledged to work towards broader ecosystem objectives, including collaborating with universities and research institutions, providing specialized workforce training, and prioritizing customer orders during semiconductor supply shortages.

Chips Act Momentum Continues

The Commission stated that these projects are in line with the goals of the European Chips Act and contribute to Europe’s long-term semiconductor supply security. Zeiss and Zadient are also seeking recognition as Integrated Production Facilities under the Chips Act framework.

Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition at the Commission, remarked, “Chip manufacturing necessitates highly sophisticated production equipment and materials with specific characteristics such as high purity. The German measures approved today reinforce the EU’s position in the semiconductor value chain and facilitate innovation to support Europe’s technological leadership and resilience in this sector.”

These approvals mark the twelfth and thirteenth semiconductor aid decisions made in accordance with the Chips Act principles, bringing the total approved public support across Europe to approximately €13.9 billion.