EU state aid rules for chip manufacturers

Subject: EU state aid rules for chip manufacturers

1. Has the Commission received a notification from Germany regarding an exemption for the chip manufacturer Intel from the state aid rules under Article 107(3) TFEU, and, if so, when can a response from the Commission be expected?

2. Considering that Article 13 of the Chips Act provides for support by Member States for chip manufacturers with regard to Articles 107 and 108 TFEU, will it only be possible for chip manufacturers to receive state aid after the adoption of this act?

3. Have any other countries already submitted a notification for chip manufacturers to the Commission, and, if so, what was the Commission’s response?

Submitted: 24.1.2023

Answer given by Executive Vice-President Vestager on behalf of the European Commission (6 March 2023)

The Commission is in contact with several Member States on potential support under Article 107(3)(c) of the Treaty on the Functioning of the EU (TFEU) in the area of semiconductor manufacturing. The Commission cannot comment on ongoing procedures concerning individual cases.

The relevant state aid rules are part of primary law. Secondary legislation like the proposed Chips Act (1) cannot affect Treaty provisions on state aid.

As also outlined in the Chips Act Communication (2), Member States can notify support measures for semiconductor manufacturing independently of the adoption of the Chips Act and the Commission will assess them based on the existing state aid provisions.

On 4 October 2022, the Commission approved, under the applicable EU State aid rules, an Italian measure to support STMicroelectronics in the construction of a plant in the semiconductor value chain in Catania, Sicily (3), in line with the ambitions set out in the Chips Act Communication.

1 ∙ ⸱ Proposal for a regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe's semiconductor ecosystem

(Chips Act) (COM/2022/46 final).

2 ∙ ⸱ COM/2022/45 final.

3 ∙ ⸱ https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5970