BRUSSELS -- The European Union is committing 5 billion euros ($6.5 billion) toward research on semiconductors and other electronics as part of an effort to catch its Asian and US rivals.

The funding will support research parks across the region, where major chip manufacturers will cooperate on next-generation semiconductor design and development.

Of the grants, the European Commission would fund some 1.5 billion euros, with the rest coming from EU member states over the next seven years. Funding is expected to come available this year.

The EC was motivated by the modest investment and growth of the region's electronics industry, which has grown 5% annually since 2000 but lags other regions.

"Others are aggressively investing in computer chips and Europe cannot be left behind," said Neelie Kroes, EU Commission vice president. "A rapid and strong coordination of public investment at EU, Member State and regional level is needed to ensure that transformation."

The monies could help chipmakers that have major European operations such as Infineon, ASML, Intel, ARM, STMicroelectronics and NXP.

Ed: $1 = 0.7751 euros