The European Commission recently endorsed a €100 million Irish initiative to advance the microelectronics production industry in the context of the ongoing conflict between Russia and Ukraine. The funds will be utilized towards supporting businesses in this sector.
The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors that are key to accelerating the green transition and reducing fuel dependencies.
The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
The purpose of the scheme is to provide financial support to microelectronics-manufacturing companies, which have been particularly affected by the current geopolitical crisis. The measure will consist in aid for additional costs due to exceptionally severe increases in natural gas and electricity prices in the form of direct grants, up to a maximum individual amount of €50 million.
The Commission found that the Irish measure is in line with the conditions set out in the Temporary Crisis Framework.