A new state-run technology investment company with a capital of 20 billion euros ($22 billion) will be established to revitalize Spain’s semiconductor and audiovisual industries.
Digital Transformation Minister José Luis Escriva announced the creation of the Spanish Society for Technological Transformation (SETT) during the Mobile World Congress in Barcelona on Monday (February 26), Reuters report Monday.
According to the report, SETT will focus on promoting investment in strategic high-tech sectors such as telecommunications, providing consulting services and supporting infrastructure construction for the semiconductor industry.
Additionally, the company aims to attract investors and technological know-how into public-private partnerships, the report said.
The move comes after the Spanish government announced plans in December to acquire a stake in Telefonica as a counterbalance to Saudi Arabia’s STC, according to the report. Escriva hinted that SETT could be used to secure a stake in Telefonica in the future.
SETT’s announcement comes a week after the U.S. Department of Commerce and the White House announced $1.5 billion in direct funding. Global Foundriesthe third largest contract in the world chip manufacturer And it is the only company of its size and scale headquartered in the United States.
Federal funding comes from the $50 billion CHIPS and Science Act, which will strengthen the resiliency of the U.S. domestic supply chain, strengthen U.S. competitiveness in current generation and mature node semiconductor production, and It is intended to support domestic economic and national security capabilities.
“Semiconductors are the brains of modern technology,” Vice President Kamala Harris said when announcing the funding. “They are no bigger than a fingernail and no thicker than a sheet of paper, but they are essential to every electronic device we use today, from computers and televisions to cars and washing machines.”
Demand for artificial intelligence (AI) chip Being the dominant player in the market, Nvidiawhose market value soared to $2 trillion on Thursday (February 22), making it the third most valuable company in the United States.
While AI companies are concerned about a shortage of expensive AI chips, NVIDIA dominates the chip market with a global market share of more than 80%.