Germany Cleans Up in EU Microchip Funding

October 2021

The European Union’s 4.6-billion-euro ECSEL (Electronics Components and Systems for European Leadership) program – started in 2014 to promote investment in computer chip production – has funded its final 14 projects, and 13 of them feature German participation.

These projects will receive EUR 37 million from Brussels plus EUR 35.5 million from the German federal government and the eastern German regional states of Saxony and Thuringia.

The largest project under German management, reported the website Market Research Telecast , is the “Automotive Intelligence for/at Connected Shared Mobility” (AI4CSM) with a total budget of just under EUR 42 million.

“We need our own independent chip production in Germany and Europe – the current shortage makes that clear,” said German Education and Research Minister Anja Karliczek in a statement. “Thanks to the European research initiative ECSEL, we’re off to a good start…I’m very happy that German companies, research institutions and universities are represented in the final ECSEL funding round with 13 of 14 projects. This shows that there’s little going on in European electronics without German partners.”

Roughly one quarter of all EU ECSEL funds have gone to projects with German participation over the course of the initiative – well above Germany’s 18 percent share of the EU’s annual budget. National and regional German governments pumped some EUR 240 million into chip production projects as well.

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