The European Commission has approved €659 million ($751 million) in German state aid for the projects, which are focused on expanding semiconductor production capabilities.

According to the European Commission, the initiatives will play an important role in strengthening the EU’s semiconductor value chain, increasing advanced chip manufacturing capacity, and improving Europe’s technological sovereignty in the sector.

European Commission Executive Vice-President Teresa Ribera said the approval of the four projects in Germany is clear evidence that the European Union is turning its commitments under the EU Chips Act into practical action.

She added that the investment will accelerate the development of an advanced semiconductor industry in Europe and help create more secure and resilient future supply chains.

The European Union introduced the EU Chips Act to increase its share of global chip production and reduce dependence on Asian countries for semiconductor supplies. Under the initiative, member states are encouraging investment in advanced semiconductor projects to build a stronger and more independent chip industry.