Commission Approves €211 Million Italian State Aid Measure to Support Photonic Chips Development
April 09, 2026 -- The European Commission has approved, under EU State aid rules, a €211 million Italian measure to support the development of photonic optical transceivers based on graphene by CamGraPhIC, an Italian SME.
Optical transceivers are devices used to send and receive data through light instead of electrons in chips. These chips can be used in different sectors, including automotive, telecommunication, aerospace and defence. Replacement of the traditionally used silicon with graphene is expected to significantly improve the devices' performance and efficiency. The project will be carried out in Pisa, Tuscany, and in Bergamo, Lombardy. It will involve collaborations with both universities and research and technology organisations. The aid will take the form of a direct grant to CamGraPhIC.
The Commission assessed the measure under EU State aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the EU and the 2022 State aid Framework for research, development and innovation. The Commission found that the measure is necessary and appropriate to support the development of graphene photonics technology, contributing to the EU's strategic objectives related to R&D activities in the field of chips. Furthermore, the Commission concluded that the aid would have an 'incentive effect' as the beneficiary would not carry out the investment in the absence of public support. Finally, the Commission found that the measure is proportionate and will not have undue negative effects on competition and trade in the EU. 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.115733 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.


