EU clears 457 mln euro aid for STMicro-led scheme

BRUSSELS, Jan 28 (Reuters) - The European Commission gave France the green light on Wednesday to provide 457 million euros ($606 million) in state aid to a nanotechnology research programme led by chipmaker STMicroelectronics (STM.PA).

The funds will help finance the Nano2012 programme, which also involves other industrial players and is aimed at developing new technologies to design and produce the next generation of integrated circuits.

"The Nano2012 programme to develop new technologies for the manufacture of semiconductors in Europe is in line with the EU's major research objectives," EU Competition Commissioner Neelie Kroes said in a statement.

"Its positive effects will far outweigh any distortion of competition that may result from the aid."

The Commission, the European Union's executive arm, monitors state aid in the 27-nation bloc to ensure that subsidies do not distort competition in its single market. (Writing by Marcin Grajewski, editing by Dale Hudson)