EU Approves $8.7 Billion of State Aid for Tech Innovation Projects (reuters.com) 14
The European Commission has approved 8.1 billion euros ($8.7 billion) of state aid for microelectronics and communication technology projects as part of the European Union's drive to be at the cutting edge of technological innovation. From a report: The EU executive said on Thursday that 14 member countries could provide the aid to 68 projects involving companies including Airbus, ASML and Ericsson. The projects have been collectively designated an Important Project of Common European Interest (IPCEI), qualifying them for easier EU state aid rules. They follow an earlier batch of IPCEI projects in the same sector approved in 2018.
The projects, which involve a total of 56 companies, include research and development into materials and tools, as well as chip design and manufacturing processes. They target 5G and 6G telecoms technology, along with autonomous driving, artificial intelligence (AI) and quantum computing. The first novel products could come to market as early as 2025, while the overall project is expected to be completed by 2032.
The projects, which involve a total of 56 companies, include research and development into materials and tools, as well as chip design and manufacturing processes. They target 5G and 6G telecoms technology, along with autonomous driving, artificial intelligence (AI) and quantum computing. The first novel products could come to market as early as 2025, while the overall project is expected to be completed by 2032.
9 billion? Wow. (Score:2)
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While this is just one example of R&D spending, the EU does appear to lag behind the US and China in R&D spending. The EU currently stands at about 2.3% of GDP on R&D, while China spends 2.6% and the US spends 3.4%. The US, EU, and China all have comparable GDPs (on a PPP basis) so they all have the same capacity to match each other's spending in R&D. Those fractions of a percentage amount to hundreds of billions of dollars per year in extra R&D spending by the US and China. There is no
You mean purchases from China? (Score:1)
It is always funny to see the EU throwing money at the tech sector, when it usually winds being something going to Huawei or going to some Chinese interest. Maybe this is to give a middle finger to the US, but having PLA soldiers and bases in Europe will not exactly be bastions of freedom the Europeans think it will be, especially when France, Berlin, Madrid, and other cities wind up being Hong Kong-ed.
The EU needs their homegrown tech stuff, namely chip fabs. If they had 20nm tech that doesn't need the v
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Even the summary mentions the money includes research into chip design and manufacturing processes, so they do seem to be aware of the issues you mention and are trying to work on them. They aren't spending enough money on it though if they really want to stem the tide.
The most profitable businesses in the world need s (Score:3)
I am shocked! I am shocked! Well, not that shocked.
Itâ(TM)s super easy to beat the imported horse, and that does not make you great at growing your own horses.
Give it a decade or two and the EU will be so far behind the rest of the world and still wonâ(TM)t admit to what they are doing wrong.
I am an EU citizen btw.
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Countries investing in technology locally isn't out of the ordinary. This isn't handouts, it's an execution of government policy to set a desired direction in industry. Literally every country does it. Nearly every industry does it too. The only issue here is the EU policy to date has banned state aid by individual countries as part of levelling the playing field within the common market.
Give it a decade or two and the EU will be so far behind the rest of the world
Based on what exactly? Some extra funding for technology? Currently the companies listed are all exemplars in their field
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I wouldn't label someone as anti-government citizen or say they don't know what their talking about. What I think the person was talking about is government is extremely inefficient at spending money. This money will have special interest groups lobbying for it, so will the best solution get funded? Not necessarily. Politics and government don't mix well. You get bad solutions.
This isn't anti-government, this is an observation of how government has worked in the past and right now.
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What are you talking about? This is specifically to counter the mountains of cash the US and China are pumping into their tech industries.
Why do they need R&D money? (Score:3)
Why do so many multi-million / multi-billion dollar companies need government / tax money for their R&D these days?
I wouldn't even mind that much if the R&D funded by public support was, in some small way, paid back by public projects beyond the usual "WE PROVIDE JOBS" rhetoric that seems to give every company carte-blanche to run-over entire societies in their pursuit of further profit. If the tax payers give money to private companies, there should be a return on investment of some kind. Even if it's just government owned stock that provides dividends or future value like any other investor would receive.
This concept that all costs for big business needs to be socialized, while all profits must be privatized really needs to stop. It's not just "that doesn't look good" territory anymore. It's downright despotic.
Europe's problem is not lack of capital (Score:4, Insightful)
The main problem in Europe is risk aversion, not lack of capital. In other words, there is a lack of societal support for entrepeneurship. That is why European entrepeneurs come to the US to start their businesses, or move them once started.
In addition, European laws put a ceiling on the upside for entrepeneurs.
Another name for successful entrepeneurs: capitalists. A dirty word, by the way, now on both sides of the Atlantic.
Maybe just get out of the way? (Score:2)