TXN - European Union finalizes $47B Chips Act to compete with U.S. Asia

2023-04-18 12:19:48 ET

Lawmakers from the European Union confirmed on Tuesday that they had passed the 45B€ ($47B) Chips Act, finalizing recent discussions to help the 27-country bloc better compete with the U.S. and Asia.

It was reported last week that a finalized deal could come as soon as April 18, as recent discussions settled on finding funds needed to close a 400M€ shortfall.

In November, envoys of the 27-country bloc unanimously backed an amended version of a previous proposal from the European Commission.

Intel ( NASDAQ: INTC ) has worked to increase its manufacturing presence on the continent. Last March, the company said it would invest approximately $88B, or 80B€, in chip manufacturing in Europe over the next decade, including an $18.6B mega fab in Germany.

The company is reportedly still working with the German government on subsidies for the plant.

The Pat Gelsinger-led Intel ( INTC ) has also worked to build a plant in Italy, having reportedly picked the town of Vigasio in the Italian region Veneto, roughly 70 miles west of Venice.

However, Gelsinger recently said that while Italy is still in the running for the plant, Intel ( INTC ) has opened its plans to other European countries amid continuing negotiations.

In contrast, the U.S. passed its $52B CHIPs Act in August 2022 in an effort to reduce reliance on Asia amid rising geopolitical tensions and supply chain disruptions caused by the pandemic .

Related tickers: Intel ( INTC ), Taiwan Semiconductor ( TSM ), Samsung (OTCPK:SSNLF), Nvidia ( NVDA ), STMicroelectronics ( STM ), Advanced Micro Devices ( AMD ), Micron Technology ( MU ), Texas Instruments ( TXN )

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