Brussels, 24 February 2025
The European Commission has approved, under EU State aid rules, a €227 million Austrian measure to support ams Osram in the construction of an advanced manufacturing facility in Premstätten, Austria. The measure will strengthen Europe’s security of supply, resilience and technological autonomy in semiconductor technologies, in line with the objectives set out in the European Chips Act Communication and the Political Guidelines for the European Commission 2024-2029.
The Austrian measure
Austria notified the Commission of its plan to support ams Osram in setting-up a wafer manufacturing facility in Premstätten. The wafers will be used in chips that serve a diverse range of applications across the automotive, consumer, industrial and medical markets. The new facility will be based on a toolbox approach, which combines Complementary Metal Oxide Semiconductors (‘CMOS’) technology for transistors, with a Through Silicon Via (‘TSV’) technique, which allows for a vertical electrical connection of chips, and/or optical filters (‘Filters’), and thereby provides specific capabilities to the final chip. The advantage of such a tightly integrated process is producing Grade 0 automotive qualified products which offers access to highly customizable products, and allows reliability and performance, superior to other solutions.
The plant, which is expected to be operating at full capacity in 2030, will be the first facility in Europe with such an integrated process and producing Grade 0 automotive qualified products. The plant will also be partially open to other semiconductor companies to design and produce their own semiconductor chips.
The aid will take the form of a direct grant of approximately €227 million to ams Osram to support its investment amounting to €1,4 billion. Under the measure, ams Osram agreed to:
- ensure that the project will have a broader impact with positive effects on the EU semiconductor value chain;
- contribute to the development of a first-of-a-kind integrated manufacturing facility in the EU;
- implement priority rated orders in the case of a supply shortage in line with the European Chips Act; and
- develop and deploy educational and skills training to increase the pool of qualified and skilled workforce.
The Commission assessment
The Commission assessed the Austrian measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU’), which enables Member States to grant aid to facilitate the development of certain economic activities subject to certain conditions, and based on the principles set out in the European Chips Act Communication.
The Commission found that:
- The measure facilitates the development of certain economic activities, by enabling the establishment of an integrated wafer manufacturing facility allowing to integrate TSV and/or filter capabilities on a CMOS wafer in Europe.
- The facility is first-of-a-kind in Europe. . ams Osram will be first in Europe to offer CMOS technology in an integrated manufacturing facility.
- The aid has an ‘incentive effect’, as the beneficiary would not carry out this investment in Europe without public support.
- The measure has a limited impact on competition and trade within the EU, as similar products would have otherwise been sourced from outside Europe.
- The measure is necessary and appropriate to ensure the resilience of Europe’s semiconductor supply chain. In addition, the aid is proportionate and limited to the minimum necessary based on a proven funding gap (i.e. the aid amount necessary to incentivise the investment by the beneficiary that otherwise would not take place). Finally, ams Osram has agreed to share with Austria potential profits beyond current expectations.
- The measure has wide positive effects for the European semiconductor ecosystem and contributes to strengthening Europe’s security of supply. It sets up an integrated manufacturing facility which commits to comply with priority rated orders to produce in Europe in case of a supply crisis, as defined in the EU Chips Act Regulation. The integrated manufacturing facility in in Premstätten will help reverse the tendency of overreliance on wafers manufactured outside of Europe. The Commission also took note that ams Osram has committed to apply to be recognised as an Integrated Production Facility and as an Open EU Foundry under the EU Chips Act Regulation and will comply with all obligations linked to this status.
On this basis, the Commission approved the Austrian measure under EU State aid rules.
Background
On 8 February 2022, the Commission adopted the European Chips Act Communication. It is part of a comprehensive Chips Act package, which also included the European Chips Act that entered into force on 21 September 2023.
In the European Chips Act Communication, the Commission recalled that investments in new advanced production facilities in the semiconductor sector are important to safeguard the EU’s security of supply and supply chain resilience, while generating significant positive impacts to the wider economy. The Commission recognised in that Communication also a number of factors relevant for a case-by-case assessment directly under Article 107(3)(c) TFEU.
Today’s approval is the seventh decision by the Commission based on these principles. On 5 October 2022, the Commission approved, under EU State aid rules, an Italian measure to support STMicroelectronics in the construction of a SiC wafer plant in Catania, Italy. In addition, on 27 April 2023, the Commission approved a €2.9 billion French aid measure to support STMicroelectronics and GlobalFoundries in the construction of a new microchips manufacturing facility in Crolles, France. On 31 May 2024, an additional Italian measure was approved to support STMicroelectronics in setting up a new integrated SiC manufacturing facility in Catania, Italy. On 20 August 2024, the Commission approved a German measure to support European Semiconductor Manufacturing Company in setting up a microchip manufacturing plant in Dresden, Germany. On 18 December 2024, the Commission approved an Italian measure to support Silicon Box in the construction of a semiconductor advanced packaging and testing facility in Novara, Italy. On 20 February 2025, the Commission approved a German measure to support Infineon in setting up a new semiconductor manufacturing facility in Dresden, Germany.
More information
The non-confidential version of the decision will be made available under the case number SA.113428 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.
Quote(s)
This Austrian project will have wide positive effects for the European semiconductor ecosystem. It will support the development of a strong and resilient digital economy in Europe, ensure a secure supply of semiconductors for the industry and help create high-skilled employment while limiting any potential distortion of competition.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
Source – EU Commission