EU approves €76 million German aid for quantum diamond semiconductor facility

en.Wedoany.com Reported - The European Commission has approved a €76 million German state aid measure to support QuantumDiamonds GmbH in building a new production facility for semiconductor testing equipment in Munich.

Germany notified the Commission of its plan to support QuantumDiamonds' "IPF-ATEST" project. Based on novel quantum sensors, the project aims to develop and manufacture advanced metrology and inspection systems for the semiconductor industry, enabling high-resolution and three-dimensional testing of modern chips. The facility will be the first production site in the EU for new semiconductor metrology and inspection systems based on quantum sensing. The aid is provided in the form of a direct grant amounting to €76 million.

Under the measure, QuantumDiamonds has agreed to several conditions, including having a broader positive impact on the EU semiconductor value chain by ensuring supply security and increasing the qualified workforce; strengthening cooperation with universities and research institutions; prioritizing orders in case of supply shortages; making part of the facility available to early-stage high-tech companies, startups, and academic labs, creating opportunities for SMEs; and sharing with Germany potential project-related profits exceeding current expectations.

The European Commission assessed the German measure under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU) and the principles set out in the European Chips Act. The Commission concluded that the measure promotes economic development by creating manufacturing capacity for semiconductor testing equipment in Europe; the facility is the first of its kind in Europe; the aid has an "incentive effect" as the company would not invest in Europe without public support; the measure has a limited impact on competition and trade within the EU and is necessary and appropriate for ensuring the resilience of the European semiconductor supply chain; and the aid amount is based on a proven funding gap and has been limited to the necessary minimum. Furthermore, the measure has broader positive effects on the European semiconductor ecosystem and helps strengthen Europe's supply security. The beneficiary will cooperate with startups, SMEs, and research institutions. QuantumDiamonds is applying for its facility to be recognized as an integrated production facility under the EU Chips Act regulation and has committed to fulfilling all obligations associated with this status. Based on this assessment, the European Commission approved the German measure.

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