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IFX - Infineon Technologies AG News Story

€35.6 -0.3  -0.8%

Last Trade - 09/04/21

Large Cap
Market Cap £40.18bn
Enterprise Value £43.36bn
Revenue £8.05bn
Position in Universe 34th / 1045

UPDATE 1-Germany predicts chip investments of up to 50 bln euros in Europe

Wed 3rd February, 2021 4:36pm
(Adds details on deadline, other subsidy projects)
    By Michael Nienaber
    BERLIN, Feb 3 (Reuters) - European countries are planning to
support the local production of technology hardware with
targeted aid that could result in  overall investments of up to
50 billion euros ($60 billion), Germany said on Wednesday.
    Germany, France and 17 other EU countries agreed to join
forces to invest in processors and semiconductor technologies,
key to internet-connected devices and data processing in a push
to catch up with the United States and Asia.*:nL1N2IN0U3
    Europe's share of the 440 billion-euro global semiconductor
market is around 10%, with the EU currently relying on chips
made abroad. Such dependence on chips and other products has
come under the spotlight during the COVID-19 pandemic. 
    German Economy Minister Peter Altmaier said during a virtual
panel discussion with his French counterpart, Bruno Le Maire, he
expected the European project, also known as Important Project
of Common European Interest (IPCEI), to trigger overall
investments in the chip industry of up to 50 billion euros.
    "I assume that in all countries that are ready to take part
in this IPCEI ... that we'll clearly get together a double-digit
billion euros amount - and not in the lower range but rather in
the middle range," Altmaier said.
    "If this will be 50 billion euros at the end or if it's
going more into the direction of 20 billion euros, that's beyond
my predictions."
    Altmaier estimated that companies would contribute between
60% and 80% of the overall investments, with state subsidies
from EU member states ranging between 20% and 40%.
    A spokesman for chip maker Infineon Technologies  IFXGn.DE 
welcomed Altmaier's push to expand state aid.
    The European Commission and member states should act quickly
now as the plan could make a significant contribution to
increasing Europe's competitiveness and geopolitical resilience,
the spokesman added.
    Companies can apply for subsidies by sending their
investment plans to the German economy ministry until March 1.
The European Commission will then have a look at the individual
projects, with a final decision expected later this year.
    Germany and France have initiated similar projects in other
sectors such as battery cells, cloud computing and artificial
intelligence to make Europe less dependent on producers and tech
giants from the United States and China.   
    ($1 = 0.8317 euros)

 (Reporting by Michael Nienaber; Additional reporting by Douglas
Busvine; Editing by Andrea Ricci and Steve Orlofsky)
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