The European Union has agreed to invest €43 billion ($47 billion) in the semiconductor sector to significantly increase local chip production and introduce advanced manufacturing processes to member states. The move also aims to build a local semiconductor supply chain and avoid chip shortages in critical sectors such as automotive.
“We have a deal in the EU #ChipsAct” Thierry Breton, the European Commissioner for the Internal Market tweeted. “In a geopolitical context of risk aversion, Europe is taking its destiny into its own hands. By mastering state-of-the-art semiconductors, the EU will become an industrial powerhouse in the markets of the future. ”
Currently, only about 10% of the chips produced in the world are made in the EU. Meanwhile, most of the chips for the EU’s automotive, IT and telecom industries are manufactured outside Europe, posing challenges for companies like Ericsson, Volkswagen and Nokia. The European Chips Act is designed to increase the share of chips produced in the EU to 20% (in value terms) by 2030.
One of the European Union’s particular concerns is that all the advanced processors that power the world’s fastest supercomputers (including Europe’s most powerful supercomputer, Finland’s Lumi) are being sold to the United States, Taiwan, or China. It’s made in Korea. The European Chip Act aims to lure chip makers with cutting-edge process technology to the block.
On the other hand, it is not just the major producers who get funding from the EU. Initially, the European Commission proposed to only fund cutting-edge fabs, but now EU authorities and legislators are phasing out the entire value chain, incorporating mature chip production and R&D centers. We are expanding the scope to include it. Reuters.
“Europe’s vision of doubling its global market share to 20% by 2030 and producing Europe’s most sophisticated and energy-efficient semiconductors has already attracted significant private investment,” said Breton. teeth, bloomberg“Today, we are mobilizing significant public funding and the regulatory framework to make this vision a reality.”
In the past, EU member states have already done a lot to attract big chip makers. Intel will continue to use its cutting-edge production node in its Irish fab and build an all-new production campus in Germany where it will manufacture its most advanced processors.
Said “We have a tipping law” Margrethe BesterExecutive Vice President of the European Commission for a Europe Fit for the Digital Age, said in a Twitter post. A lot of promises and a lot of daily conveniences.Today’s Trilogue Agreement will give the EU more ability to produce its own chips.Also, to become a partner in global chip supply, the chip You need a chain.”
To date, all major chip-producing countries, including Taiwan, South Korea, Japan and the United States, have enacted or are about to pass semiconductor financing laws. As a result, it will not be easy for the EU to catch up with market leaders.
