Commission approves French aid for smart chip research centre
Taking the line that 'state aid is essential to carrying out research involving such a high degree of technological risk and that the aid has a strong incentive effect', the European Commission has approved 23.6 million euro of state aid for the French company Altis Semiconductor. State aid that distorts competition in the common market is prohibited in the EC Treaty, although exceptions to the ban do exist when the proposed aid may have a beneficial impact on the EU in general. As research and development (R&D) is regarded as being in the common interest, it is not uncommon for the Commission to allow subsidisation by national governments. Altis Semiconductor will use the aid to set up a research centre for the design and development of a new generation of smart chip, incorporating an on-chip memory for use in computers, mobile communications, card products and other applications. Research will be conducted in collaboration with public laboratories. 'The Commission considers that the aid will have the effect of speeding up the research projects qualifying for assistance, while helping them match the development rate for each generation of integrated circuit as set by the International Technology Roadmap for Semiconductors,' reads a Commission statement. The Commission also provides further justification for approving state aid: Altis' own resources would not be sufficient to fund such a large scale R&D project; the development of this technology would constitute a breakthrough, but also involves a degree of risk and therefore warrants aid; and the additional resources would increase both Altis' R&D expenditure and double the number of research workers working for the company.
Kraje
France