Commission approves €41.5 million Italian state aid measure to support a new manufacturing facility for glass-based photonic chips

The European Commission has approved, under EU state aid rules, a €41.5 million Italian state aid measure to support Ephos S.r.l., an Italian SME, in the setting up of a first-of-a-kind manufacturing facility for glass-based photonic chips in the area of Milan.

The aid will take the form of a direct grant. The measure will increase technological autonomy in semiconductor technologies for the EU.

The new facility will be a first-of-a-kind in the EU, due to the uniqueness of the manufacturing process and of the resulting photonic chips. The facility will help integrate optical materials on glass-based photonic circuits. This will allow faster manufacturing of photonic chips and address high-value applications such as data centres and quantum computing.

The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU'), which allows member states to support the development of certain economic activities subject to certain conditions, and based on the principles outlined in the European Chips Act Communication. The Commission found that the aid is necessary to enable the investment, which would not have occurred without public support. The Commission also found that the aid is proportionate, as it is limited to the minimum necessary and will have a limited impact on competition and trade between member states. On this basis, the Commission approved the Italian measure under EU state aid rules.

The non-confidential version of the decision will be made available under the case number SA.117987 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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