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Comment: EU walks state-aid tightrope to woo Intel, TSMC, others

By Lewis Crofts and Matthew Newman ( February 8, 2022, 11:06 GMT | Comment) -- Today's European Chips Act calls for contortions in the EU's state-aid rules to persuade the likes of Intel and TSMC to set up microchip factories inside the bloc and guard against future supply shortages. But with no special subsidy regime for the industry, the European Commission must fall back on the general rules in the EU treaties that ban harmful subsidies. Some fear that flexing the rules now will set a dangerous precedent. Europe’s subsidy-control rules are being asked to show gymnastic levels of flexibility to allow governments to put up the billions of euros in support needed to persuade the likes of Intel and TSMC to set up microchip factories inside the bloc....

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