The European Commission proposes a law for the EU to be a leader in this “key” sector and ensure the domestic supply of semiconductors
The lack of semiconductors caused a slowdown in economic activity in 2020 and 2021 in the technology and automotive sectors, among others. In the next ten years, Europe wants to make its economy more independent, and to do this, it needs to reduce its dependence on Asian chip supplies. The European Commission has proposed the European Chip Law, a plan to mobilize 43,000 million euros in public and private investments – 30,000 of which were already foreseen in the Next Generation Funds, Horizon Europe and national funds – so that Europe becomes a benchmark in chip manufacturing worldwide.
Europe aspires to manufacture 20% of the chips manufactured in the world by 2030 and thus rival giants such as China and Taiwan. Other powers like the US also want to be in that race. In fact, the US government has already announced a plan of 45,500 million euros to compete with the Asian giant. It is, without a doubt, a strategic sector and the demand for these components – essential for the manufacture of technological devices and automobiles – is expected to quadruple in the coming years.
Economic and geopolitical key
In its plan, Brussels combines “the investment, the regulatory framework and the strategic associations necessary to make Europe a leader in this market,” according to Commission President Ursula von der Leyen. The green and digital transitions largely depend on the chips. The Commissioner for the Internal Market, Thierry Breton, has acknowledged that “ensuring the supply of the most advanced semiconductors has become an economic and geopolitical priority”. With the plan designed by Brussels, Europe will go “from research laboratories to manufacturing,” he stressed.
Similarly, the EU “is using all possible means” to avoid new shocks in the supply of raw materials. “By investing in this leading sector of the future, we will ensure that European industry remains competitive and generates quality jobs,” Breton assured.
The European Executive’s proposal will now be discussed in the European Parliament and Council, following an ordinary legislative procedure. If these two filters pass, the regulation would come into force immediately throughout the EU.
#Europe #mobilize #million #produce #worlds #chips