Spain’s government has approved a plan to spend about $13 billion to expand its chip manufacturing capabilities domestically.
In a report from Reuters, the government approved a semiconductor plan that would fuel activities through 2027 and set aside more than $9 billion to fund the building of new fabs.
The move is designed to help with the ongoing chip shortage that is impacting the global supply chain due to the COVID-19 pandemic. The COVID-19 outbreak revealed flaws in the aggregation of semiconductor manufacturing being restricted to only a handful of locations — Korea, Taiwan and China.
Since then, governments and companies globally have renewed calls to expand domestic semiconductor manufacturing out of fear for problems in the supply chain rising again due to either future pandemics or geopolitical issues.
Spain originally pledged the funding in April. The expansion will be mainly financed through the European Union pandemic relief fund. The funding will finance domestic chip production capacity in process technology below and above 5 nanometers.
"The aim is to comprehensively develop the design and production capacities of the Spanish microelectronics and semi-conductor industry, covering the entire value chain from design to chip manufacturing," said Nadia Calvino, Spain’s economy minister.