The government approves the PERTE for semiconductors to “transform the country” and alleviate the delay in the delivery of electronics and vehicles due to the pandemic and the war in Ukraine
The supply chain collapse caused by the pandemic and the war in Ukraine, which has hampered the production and supply of vehicles and electronic products in Spain, has forced the government to rethink its industrial strategy. Aiming to “transform the country”, the Council of Ministers approved this Tuesday a new PERTE (Strategic Project for Recovery) for microchips and semiconductors, which involves a public investment of 12,250 million euros until 2027, 1,000 million more than planned.
“It will be the most important PERTE in terms of quantity and contribution to Spain’s economic transformation,” said the economic vice president at the press conference after the Council of Ministers. Nadia Calviño explained that this sector has “significant barriers to entry” due to the investment and specialization it requires. Europe accounts for only 10% of total chip production, with Taiwan, the United States, South Korea, Japan and China as the powerhouses. The EU’s goal is to reach 20% of the quota.
And Spain could be one of the European countries leading the sector in the medium term, because “it has the talent and the European funds offer an extraordinary opportunity to boost it,” assured Calviño.
A decisive investment to improve the situation, after vehicle production in Spain fell by 10.3% in April due to the lack of essential parts for manufacturing due to the effects of the pandemic exacerbated by the Russian invasion from Ukraine. For this reason, according to data from Anfac (Association of Automobile Manufacturers), vehicle assembly in Spanish factories fell by 15.4% in the first four months of the year, to just 718,000 units, compared to 828,000 a year ago.
The president of the government will meet this Tuesday at the World Economic Forum to be held in Davos, Switzerland, with the directors of Intel, Micron, Cisco and Qualcomm, the four major manufacturers of microchips worldwide. “We want to become the best partner for the industry and its efforts to expand and diversify microchip manufacturing to meet growing demand and supply chain disruptions,” said Pedro Sánchez.
On the other hand, the Council of Ministers approved the rescue of the Valencian airline Air Nostrum for 111 million euros through the SEPI (State Society of Industrial Participations) fund after the profound impact of the pandemic on its accounts.
The passenger transport airline was founded in 1994 as the first private regional aviation project in Spain. The activity plays “a very relevant role as an economic engine, generating added value and employment,” SEPI said in a statement.
The airline’s turnover increased to 539 million euros at the end of 2019, with a national workforce of 1,400 employees. However, the pandemic caused a 40% drop in turnover in 2020, causing a loss of 144 million euros and a shortfall in equity.
This operation comes on top of 21 previous rescues of Air Europa, Ávoris, Plus Ultra Líneas Aéreas, Duro Felguera, Tubos Reunidos, Rugui Steel, Hotusa, Grupo Airtificial, Grupo Serhs and Reinosa, Grupo Losán, Soho Boutique Hotels, Abades, Técnicas Reunidas, Wamos, Eurocurrency, Grupo Ferroatlántica, Grupo Inversor Hesperia (GIHSA), Abba, Julià and Grupo Mediterránea.
Source: La Verdad
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