Current report number 22/2023 from the June 12, 2023.
Management Board of VIGO Photonics S.A. (“Company”, “Issuer”) informs that today it became aware of the European Commission’s decision approving the amount of state aid for the Company’s project implemented as part of the integrated European project IPCEI ME/CT (Important Projects of Common European Interest on Microelectronics and Communication Technologies).
The decision of the European Commission approves the maximum level of public aid in the project and does not mean that the Company has been granted co-financing. The Commission assessed the proposed project under EU State aid rules and in particular the Communication on Important Projects of Common European Interest.
The decision on granting the Company co-financing and determining the final amount of co-financing will be made as part of the competition procedure under the European Funds for Modern Economy (FENG) programme. Entities for which the European Commission has issued a positive decision admitting aid will be able to apply for co-financing. Information about the selection of the Company’s project to participate in the IPCEI ME/CT project as the only Polish project was provided by the Company in current report No. 11/2021 of June 1, 2021. The date of announcement of the competition under the FENG program has not yet been set.
The aim of the project is to develop and implement the technology of integrated photonic integrated circuits for detection in the mid-infrared range, to build a complete production line for photonic integrated circuits in the mid-infrared range and to create a complete supply chain for these systems. The project requires the development of new technologies, incurring significant investment and operational expenditures, as well as expenditures for the commercialization of new products on a dynamic market.
The total value of eligible costs in the project is EUR 253.41 million, and the maximum amount of state aid approved by the European Commission may amount to EUR 102.85 million, which corresponds to the amount of the so-called financial gap in the project. Eligible costs in the project are expenditures on research and development works, expenditures on the construction of a new production line and operating costs after launching a new production line.
The implementation of the project is planned for 2023-2030 and consists of two phases:
- R&D phase (2023-2027). The value of eligible costs in the R&D phase is EUR 34.19 million.
- the FID (First Industrial Deployment) phase, i.e. the first industrial implementation (2023-2030), including investments in a new production line and implementation of new products for production, including financing part of operating costs during implementation. The value of eligible costs in the FID phase is EUR 219.22 million.
After the end of the FID phase, it is planned to start serial production (after 2030), under which no public funding is provided for the project. The Company’s Management Board anticipates that the eligible costs of the project above the value of public funding will be covered from the Company’s own funds and equity, from debt financing and/or, in particular in the FID phase, from other sources, such as strategic project partnership and/or off-balance sheet financing in the project finance formula.
COMMUNICATION FROM THE COMMISSION, Criteria for analyzing the compatibility of State aid to promote the implementation of important projects of common European interest, (2021/C 528/02)
Article 17 par. 1 MAR – confidential information.