Malta has received the green light from the European Commission to help STMicroelectronics in its quest to reach higher standards in the semiconductor sector.
STMicroelectronics will receive well in excess of €20 million to upgrade its production lines as part of an EU initiative to boost microchip production in the European Union.
The project was submitted by Malta Enterprise which, along with the Enterprise Ministry, welcomed the approval of Malta’s application under the second call for Important Projects of Common European Interests (IPCEI) in the semiconductor sector.
The European Commission approved an €8 billion state-aid package, with Malta being confirmed as one of the participating 14 EU states.
It explained in the statement that Malta Enterprise will back an STMicroelectronics Malta project in its quest to reach the pinnacle of Smart Factory and Industry 4.0 standards. The investment is set to incorporate advanced automation concepts, designed to elevate the quality of devices manufactured in Europe.
The project, which will include research, development and innovation, promises to have significant spillover effects, including partnerships with the University of Malta and various industrial players.
“Malta's involvement in this initiative is a testament to the nation’s commitment to spearheading industry transformation and embracing cutting-edge technology. By fostering technological innovation, Malta, and the European Union at large, are paving the way for sustainable growth, competitiveness, and technological leadership on the global stage,” the government said in its statement.
The 14 member states forming part of this EU-wide project are: Austria, Czechia, Finland, France, Germany, Greece, Ireland, Italy, Malta, the Netherlands, Poland, Romania, Slovakia and Spain.
Member states will provide up to €8.1 billion in public funding, which is expected to unlock an additional €13.7 billion in private investments. The project involves 56 companies, including SMEs and start-ups, and 68 projects.
The strategic project is part of the EU’s effort to rival the US decision to dish out billions in public subsidies to entice chipmakers to build facilities in the US to counter China’s primacy in microelectronics production.
These projects aim at enabling the digital and green transformation by creating innovative microelectronics and communication solutions, and developing energy-efficient and resource-saving electronics systems and manufacturing methods, the European Commission said in a statement.
It said all 68 projects are “highly ambitious”, as they aim at developing technologies that go beyond what the market currently offers and will allow major improvements, notably in the areas of sensors, high-performance processors, microprocessors including artificial intelligence, actuators and communication means for secure data exchange.