The initiative will fund leading-edge and mid-range semiconductor manufacturing capacity in the United States.
HIGHLIGHTS
1. Spain is planning to raise its semiconductor spending.
2. It is budgeted at EUR 12.25 billion (roughly Rs. 1,01,600 crore)
3. The majority of the funds for the programme come from European Union pandemic relief grants.
Economy Minister Nadia Calvino said on Tuesday that Spain's government has authorised a proposal to spend EUR 12.25 billion (approximately Rs. 1,01,600 crore) on the semiconductor and microchip industry by 2027, including EUR 9.3 billion (about Rs. 77,100 crore) to fund plant construction.
The digital economy and demand produced by chip shortages are the focus of the programme, which is mostly funded by European Union pandemic relief money. When Prime Minister Pedro Sanchez announced it last month, it was set at EUR 11 billion (approximately Rs. 91,200 crore).
"The goal is to develop the entire value chain of the Spanish microelectronics and semiconductor industry, from design to chip manufacture," Economy Minister Calvino stated during the weekly cabinet meeting.
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An unanticipated rise in demand due to the pandemic and supply chain issues caused a worldwide scarcity of microchips last year, forcing a number of major manufacturers to reduce output, including Volkswagen and Renault in Spain, which partially idled assembly lines.
According to the government, the plan will invest EUR 9.3 billion (approximately Rs. 77,100 crore) in domestic semiconductor production capacity in leading-edge (below 5nm) and mid-range (above 5nm) semiconductor manufacturing.
It will invest EUR 1.1 billion (approximately Rs. 9,100 crore) to research and development, and EUR 1.3 billion (about Rs. 10,800 crore) to chip design. It would also assist Spanish companies in critical European initiatives and establish a EUR 200 million (approximately Rs. 1,700 crore) Chip Fund to encourage start-ups and scale-ups in the Spanish semiconductor sector.
Calvino noted that the semiconductor industry's lack of presence in Spain is due to a lack of support, dedication, vision, and even a clear plan.
"We want Spain to play a meaningful role in this technical field, one that it deserves, and European funding provide an exceptional opportunity," she said.
