State aid: Commission approves €100 million Irish scheme to support the microelectronics-manufacturing sector in the context of Russia’s war against Ukraine 

Daily News 21 / 03 / 2023

Economy - published on 28 August 2023

Source: European Commission Spokesperson’s Service


The European Commission has approved a €100 million Irish scheme to support the microelectronics-manufacturing sector in the context of Russia’s war against Ukraine. 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 which are key to accelerate the green transition and reduce 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. In particular, the individual aid amount (i) will not exceed 40% of the eligible costs, up to a maximum of €100 million; (ii) cannot lead to an EBITDA for the supported period exceeding 70% of the beneficiary’s EBITDA in 2021; and (iii) will be granted no later than 31 December 2023. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules.

More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine and foster the transition towards a net-zero economy can be found can be found here. The non-confidential version of the decision will be made available under the number SA.105803 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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