Spain to Increase Chip Investment to €12.2 Billion

Spanish government unveiled plans for a major push into the semiconductor and microchip industry. The EU country will up an initial investment announced last month by an additional €1.2 billion.

The government revised its investment from an initial €11 billion commitment, €9.3 billion of which is intended to finance the domestic construction of leading-edge and mid-range semiconductor production plants. It aims to complete the investment by 2027.

The cash will mainly be generated from EU pandemic relief funds. Spain’s economy minister Nadia Calvino explained that EU funding offers an extraordinary opportunity. €1.1 billion will be set aside for R&D and €1.3 billion for chip design.

The program further aims to develop a €200 million Chip Fund to support domestic start-ups and scale-ups in the semiconductor field, along with investing in strategic projects created at a European level by Spanish companies in the semiconductor field. The European Commission aims to boost the continent’s position through the EU Chips Act, a multi-billion euro initiative unveiled earlier this year.