(Bloomberg) -- Italy will invest over 4 billion euros ($4.4 billion) to develop the domestic semiconductor industry, as it seeks to support companies transitioning to greener technologies.
Prime Minister Mario Draghi's government approved a new fund which will allocate 150 million euros in 2022 and 500 million euros each of the following years until 2030 as part of a new decree law which goes into effect Wednesday.
The money will finance research and technology in the chip sector to promote strategic independence and could in particular benefit automotive companies looking to upgrade technology to produce more energy-efficient vehicles.
The European Union last month announced a new Chips Act that aims to avert supply chain disruptions by reducing dependence on foreign sources. The bloc will for the first time allow its massive state aid funding program to be used for “first-of-a-kind” production sites in Europe, as part of a goal of producing 20% of the world's semiconductors by 2030.
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