The move comes as the global semiconductor industry has been facing significant supply chain disruptions due to the Covid-19 pandemic and the ongoing trade tensions between the US and China. This has highlighted the need for countries to have their own domestic chip production capabilities to ensure uninterrupted supply chains.
The EU’s plan, which is part of its Digital Compass strategy, includes the creation of a European Chips Act that would provide funding for chip design and manufacturing. The plan also includes the creation of a new chip foundry that would produce cutting-edge semiconductors.
The EU’s ambition is to have at least 20% of the world’s chip production by 2030, up from its current share of around 10%. This would require an investment of at least €20 billion ($23 billion) in the next five years, according to EU officials.
The move is seen as an attempt by the EU to reduce its dependence on China for chip production. China currently accounts for more than half of the world’s chip production, while the US accounts for around 15%.
The plan has been welcomed by the semiconductor industry, which has been calling for greater investment in chip production to ensure the resilience of global supply chains. The European Semiconductor Industry Association said the plan would help Europe become a leading player in the global semiconductor industry.
However, some experts have raised concerns that the EU’s plan may not be sufficient to catch up with the US and China in the global chip race. They argue that the EU needs to do more to foster innovation and attract talent to the region to ensure its success.
Nevertheless, the EU’s plan marks a significant step towards greater independence in the global chip industry and a more competitive technology landscape.
The EU’s plan to invest billions of euros in chip production aims to reduce dependence on China and the US and ensure uninterrupted supply chains of essential technology components. While some experts have raised concerns about the EU’s ability to catch up with the US and China in the global chip race, the plan marks a significant step towards greater independence and competitiveness in the technology industry.
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