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Commission Approves EUR 76 Million German State Aid for First-of-a-kind Semiconductor Testing Equipment Facility
The European Commission has approved, under EU State aid rules, a EUR 76 million German measure to support QuantumDiamonds GmbH to set up a new facility for the production of semiconductor testing equipment in Munich. The measure will contribute to strengthening the EU’s position and autonomy in the semiconductor value chain, in line with the objectives set out in the European Chips Act and the Commission’s 2024-2029 Political Guidelines.
The German measure
Germany notified to the Commission the plan to support QuantumDiamonds’ “IPF-ATEST” project. This will entail the development and manufacturing of advanced metrology and inspection systems for the semiconductor industry based on novel quantum sensors, enabling high-resolution and 3D testing of modern chips. It will be the first production site for novel semiconductor metrology and inspection systems based on quantum sensing in the EU. The aid will take the form of a direct grant of EUR 76 million.
Under the measure, QuantumDiamonds agreed to:
- ensure broader impact with positive effects on the EU semiconductor value chain by ensuring the security of supply and increasing qualified workforce;
- strengthen collaborations with universities and research institutions;
- fulfil orders on a priority basis in case of a supply shortage;
- create opportunities for SMEs by making part of the facility available to early-stage, high-tech companies, start-ups and academic laboratories;
- share with Germany potential project-related profits beyond current expectations.
The Commission’s assessment
The Commission assessed the German 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.
The Commission found that:
- the measure facilitates the development of economic activity by creating manufacturing capacity for semiconductor testing equipment in Europe;
- the facility is first-of-a-kind in Europe;
- the aid has an ‘incentive effect’, as without public support, the company would not carry out the investment in Europe;
- the measure has a limited impact on competition and trade within the EU. It 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;
- the measure has wider positive effects for the European semiconductor ecosystem and contributes to strengthening Europe’s security of supply. The beneficiary will collaborate with start-ups, SMEs and research institutions. QuantumDiamonds is also applying for its facility to be recognised as a so-called Integrated Production Facility under the EU Chips Act Regulation and therefore commits to comply with all obligations linked to this status.
On this basis, the Commission approved the German measure under EU State aid rules.
