The programme that consists mostly of European Union
pandemic relief funds is directed towards the digital economy and demand
created by chip shortages. It was originally set at EUR 11 billion when
announced by Prime Minister Pedro Sanchez last month.
"The aim is to comprehensively develop the design and
production capacities of the Spanish microelectronics and semiconductor
industry, covering the entire value chain from design to chip
manufacturing," Economy Minister Calvino said during a news conference
after the weekly cabinet meeting.
An unexpected surge in demand amid the pandemic and supply
chain problems had created a worldwide shortage of microchips and forced a wide
array of global manufacturers to slow down output last year, including in Spain
where car makers Volkswagen and Renault partly idled assembly lines.
The plan will finance domestic semiconductor production
capacity in leading-edge (below 5nm) and mid-range (above 5nm) semiconductor
manufacturing with a EUR 9.3 billion investment, the government said.
It will fund research and development with a EUR 1.1 billion
subsidy and EUR 1.3 billion will be allocated to chip design. It will also
support Spanish companies in strategic projects developed at the European level
and will create a EUR 200 million Chip Fund to finance start-ups and scale-ups
in the Spanish semiconductor sector.
Lack of support, commitment, vision or even a coherent strategy
were some of the reasons why the chip industry has no presence in Spain so far,
Calvino added.
"We want Spain to play a relevant role in this
technological field, the role it deserves, and the European funds offer an
extraordinary opportunity," she said. © Reuters