SPAIN’S cabinet has approved plans to spend €12.25 billion over five years in developing the country’s micro chip and semi-conductor sector.
The investment has gone up by over €1 billion from what Prime Minister, Pedro Sanchez, proposed in early April.
A lot of the money is coming from European Union Covid-19 funding to develop new projects and revitalise industries following the pandemic.
Economy Minister, Nadia Calviño, revealed on Tuesday that €9.3 billion will be used to build new component factories.
Nadia Calviño said: “The aim is to comprehensively develop the design and production capacities of Spain’s microelectronics and semi-conductor industry, covering the entire process from design to chip manufacturing.”
The five-year investment will subsidise domestic semiconductor production capacity in leading-edge and mid-range semiconductor manufacturing to the tune of €9.3 billion.
Over €1.1 billion will go to research and development with chip design getting €1.3 billion.
It will fund research and development with a €1.1 billion subsidy and €1.3 billion allocated to chip design.
Money will also back Spanish companies in strategic projects and a €200 million fund will be set up to fund start-ups and enhancements in the semiconductor industry in Spain.
“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, “ Calviño commented.
“We want Spain to play a relevant role in this technological field, the role it deserves, and European funds offer an extraordinary opportunity,” she added.