Ursula von der Leyen announced a new European Competitiveness Fund to finance important industrial projects as part of her plan to boost European competitiveness during her second mandate in charge of the European Commission.
Von der Leyen was speaking in Dresden, Germany to inaugurate the new chip-making facility created by a joint venture of Bosch, Infineon, NXP and TSMC. The facility is the first built after the European Chips Act (ECA).
In addition, von der Leyen promised that the new EU budget would include a European Competitiveness Fund for investment in strategic sectors, including chips and advanced packaging. Talks on the new seven-year budget are underway, as the Commission will need to present it soon for the next cycle between 2027 and 2034.
Speaking about the Dresden facility, the Commission president said that “it will manufacture products that are not present or planned in any other facility across Europe” and praised the industrial fabric of Dresden and the whole Saxony region, praising the “great cooperation between young start-ups and global giants, and between business and academia.” This made the facility attractive for a project under the ECA.
First announced in 2022, the Chips Act aims to boost European chip production to reduce exposure to Taiwanese producers and possible delays in its supply chain. With the ECA, the Commission plans to double chip production to reach 20% of global production. To bolster the project in Dresden, a first-of-its-kind facility in Europe, von der Leyen authorised €5 billion in state aid from Germany.
