European Commission approves government’s €630m semiconductor investment
The European Commission have approved €630 million of state investment in Analog Devices’ Project Fanfare.
The project will result in 600 new jobs in Limerick over the next five years, as well as an additional 520 jobs during the construction phases.
Analog Devices is a global semiconductor leader that combines analog, digital, and software technologies into solutions that help drive advancements in digitised factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world.
The focus of Analog’s Irish operation is to produce quality precision products through precision manufacturing while exploiting cost-efficiencies.
Semiconductor chips are ubiquitous in our daily lives, and they are needed in almost every vital sector and service. They have critical application for health, energy, communications, and automation and as such, are central to the European Union’s digital and green transitions.
Fanfare is part of a new European Important Project of Common European Interest (IPCEI) in microelectronics and communication technologies.
IPCEI are a state aid tool that facilitate large-scale cross-border projects that significantly benefit the EU and help achieve the twin digital and green transitions by investing in breakthrough innovation and infrastructure.
Together, they combine both public and private knowledge and resources from across Europe to support projects where the technological or financial risk is too great for one company or member state alone.
Ireland is one of 14 member states with direct participants in this IPCEI on Microelectronics and Communication Technologies (IPCEI ME/CT), with a further five member states plus Norway also involved in the project.
A total of 68 projects from 56 companies form this IPCEI ME/CT. The participating member states will provide up to €8.1 billion in funding in the coming years, which is expected to unlock additional €13.7 billion in private investments.
The IPCEI ME/CT, which is the first IPCEI in which Ireland is directly participating, addresses the technological performance, sustainability and societal challenges of the next decade and is expected to result in a clear innovation advantage for Europe.
Simon Coveney, Minister for Enterprise, Trade and Employment, said: “The Irish semiconductor industry has grown deep roots over 45 years and this is an opportunity for Ireland to contribute to the development of European capacity and capability in increasingly vital frontier technologies.”