The European Commission has approved the 227 million Euro Austrian initiative to help AMS Osram build a state-of-the-art wafer manufacturing facility in Premstatten.
This initiative is a key step to strengthening European semiconductor supply chains, increasing resilience and promoting technological autonomy.
This investment is consistent with the European Chips Act and strengthens Europe’s role in global semiconductor production.
“We’re looking forward to seeing you in a clean, fair and competitive transition,” said Teresa Libera, vice president for a clean, fair and competitive transition.
“This Austrian project will have a major positive effect on European semiconductor ecosystems.
“It supports the development of a strong and resilient digital economy in Europe, ensures a safe supply of semiconductors for the industry, and creates high levels of employment while limiting potential distortions in competition.”
Strengthen the independence of European semiconductors
Semiconductors are equipped with modern technology, ranging from automobiles to industrial and medical devices.
Europe has long relied on foreign chipmakers, particularly in Asia and the US.
Recent disruptions in the global supply chain have highlighted the dependence on European semiconductor imports, affecting industries from automotive production to home appliances.
By investing in local wafer manufacturing, Europe can reduce its dependence on external suppliers and ensure the stability and security of key industries.
Furthermore, by developing a robust semiconductor sector, it will promote economic growth, create high-tech jobs, and position Europe as a global leader in chip innovation.
With countries such as the US and China making large investments in semiconductor production, Europe must accelerate its efforts to remain competitive.
The approval of the Austrian aid package shows a strategic move to localize semiconductor production, reduce supply chain vulnerabilities and increase technological sovereignty.
Wafer Manufacturing Facility in Austria
The EU has announced plans to support AMS Osram in establishing an advanced wafer manufacturing plant in Premstätten.
The facility produces high-performance semiconductor wafers for applications in multiple industries, including automobiles, home appliances, industrial solutions, and healthcare.
The plant integrates advanced technology via complementary metal oxide semiconductor (CMOS) and silicon via (TSV) technology for transistors to enhance the vertical electrical connection of CHIP.
Additionally, optical filters are incorporated to optimize chip performance. The innovative integration of these technologies enables the production of grade 0 automotive certification products known for their excellent reliability and customizability.
European Chips Law: A Framework for Growth
The European Chips Act, adopted in 2023, laid the foundation for large-scale semiconductor investments across the continent.
Recognizing the key role of semiconductors in digital and industrial transformation, the law aims to increase supply chain resilience and stimulate economic growth.
With the implementation of this Austrian initiative, Europe is taking an important step towards securing the future of semiconductors.
The AMS OSRAM facility is expected to be fully operational by 2030, significantly increasing local manufacturing capacity and job creation.
Economic and strategic benefits
The 227 million euro state aid grant will support a total investment of 1.4 billion euros by AMS Osram. The facility will be partially accessible to other semiconductor companies, encouraging collaboration and innovation within the European semiconductor ecosystem.
As part of the funding agreement, AMS Osram has committed to:
It contributes to the broader EU semiconductor value chain. Establishes Europe’s first integrated wafer manufacturing facility. Implement prioritization rating orders during supply shortages in line with the European Chips Act. Invest in education and training programs to develop a highly skilled semiconductor workforce.
Future Milestones for European Semiconductors
Investing in Austria’s wafer manufacturing is a critical step in Europe’s quest for semiconductor independence.
By supporting AMS Osakaram’s cutting-edge facilities, the EU is promoting innovation and technical leadership in the semiconductor industry while strengthening its supply chain.
As Europe continues to advance its semiconductor capabilities, such investments are key to ensuring a sustainable and competitive position in the global technology environment.
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