European billion-dollar plan to boost chip production

Photo: ANP

The European Commission will introduce a bill on Tuesday to pump billions into the semiconductor industry in Europe, called the Chips Act. The Committee believes that the EU should become less dependent on Asia, in particular, with EU subsidies, national and private investments for innovation and the production of chips on its own soil.

If it is up to European Commissioner Thierry Breton (Internal Market), the EU will double its production between now and 2030 and the export of semiconductors will be curbed if there are shortages in the EU. The shortage of microchips has plagued Europe several times since the corona crisis started. Car manufacturers, for example, had to temporarily shut down their production.

European Commission President Ursula von der Leyen mentioned an amount of 42 billion euros last week. According to Breton, a quarter of this should be invested in research and innovation and the rest mainly in the construction of factories. Six billion can come from the EU budget, the European Investment Bank (EIB) makes a contribution and the EU Member States and private investors are also counted on. The Netherlands hopes that chip machine maker ASML can further expand its position in the world through the plans.

Brussels could tolerate state aid for new chip factories that are the first of their kind and of common European interest. Foreign chip makers who want to establish themselves in an EU member state can claim subsidies.

The EU now accounts for less than 10 percent of global chip production. “It’s not all about supply and demand, though,” Breton recently wrote in his blog. “Semiconductors are at the heart of geostrategic interests and the global technology race. Superpowers are keen to secure chips because they know it is the precondition for acting militarily, economically and industrially and driving digital transformation.”

European billion-dollar plan to boost chip production
Source link European billion-dollar plan to boost chip production

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