The European Commission has approved a €227 million Austrian measure to support ams Osram in building an advanced manufacturing facility in Premstätten, Austria. This measure aims to enhance Europes supply security, resilience, and technological autonomy in semiconductor technologies, aligning with the European Chips Act Communication and the Political Guidelines for the European Commission 2024-2029.

The Austrian Measure

Austria plans to support ams Osram in establishing a wafer manufacturing facility in Premstätten. These wafers will be used in chips for various applications in the automotive, consumer, industrial, and medical markets. The facility will integrate CMOS technology with TSV techniques, offering advanced chip capabilities. This integrated process will produce Grade 0 automotive qualified products, providing highly customizable, reliable, and high-performance solutions.

The plant, operational by 2030, will be Europes first with such an integrated process, producing Grade 0 automotive qualified products. The facility will also be partially available for other semiconductor companies to design and produce their chips.

The aid will be a direct grant of approximately €227 million to ams Osram, supporting its €1.4 billion investment. Under this measure, ams Osram has committed to:

• Ensure broader impacts on the EU semiconductor value chain;
• Contribute to the first-of-its-kind integrated manufacturing facility in the EU;
• Implement priority orders during supply shortages as per the European Chips Act;
• Develop educational and skills training to expand the skilled workforce.

Commission Assessment

The Commission evaluated the Austrian measure under EU State aid rules, particularly Article 107(3)(c) TFEU, allowing aid for certain economic activities under specific conditions, aligning with the European Chips Act Communication.

The Commission found that:

• The measure facilitates the development of certain economic activities by enabling an integrated wafer manufacturing facility in Europe.
• The facility is first-of-its-kind in Europe, offering CMOS technology.
• The aid provides an incentive effect, as the investment wouldnt occur without public support.
• The measure has a limited impact on competition and trade within the EU, as similar products would be sourced outside Europe otherwise.
• The measure is necessary and appropriate to ensure Europes semiconductor supply chain resilience. The aid is proportionate and limited to the minimum necessary, addressing a funding gap. ams Osram agreed to share potential profits beyond expectations with Austria.
• The measure has wide positive effects on the European semiconductor ecosystem, enhancing Europes supply security. It establishes a facility committed to priority orders during supply crises, as defined in the EU Chips Act Regulation. The integrated manufacturing facility in Premstätten will help reduce reliance on non-European wafers. ams Osram has applied to be recognized as an Integrated Production Facility and an Open EU Foundry under the EU Chips Act Regulation, complying with all obligations.

Based on this assessment, the Commission approved the Austrian measure under EU State aid rules.

Background

On 8 February 2022, the Commission adopted the European Chips Act Communication, part of a comprehensive Chips Act package, including the European Chips Act effective from 21 September 2023.

In the European Chips Act Communication, the Commission emphasized the importance of investments in advanced semiconductor production facilities for the EUs supply security and resilience, generating positive economic impacts. The Commission identified factors for case-by-case assessments under Article 107(3)(c) TFEU.

Todays approval is the seventh Commission decision based on these principles. Previous approvals include:

• 5 October 2022: Italian measure for STMicroelectronics in Catania, Italy.
• 27 April 2023: €2.9 billion French aid for STMicroelectronics and GlobalFoundries in Crolles, France.
• 31 May 2024: Italian measure for STMicroelectronics in Catania, Italy.
• 20 August 2024: German measure for European Semiconductor Manufacturing Company in Dresden, Germany.
• 18 December 2024: Italian measure for Silicon Box in Novara, Italy.
• 20 February 2025: German measure for Infineon in Dresden, Germany.

For More Information

The non-confidential decision will be available under case number SA.113428 in the State aid register on the Commissions competition website after resolving confidentiality issues. New State aid decisions are listed in the Competition Weekly e-News.