Brussels wants power to intervene in the future semiconductor supply crisis as part of a wide range of steps aimed at building Europe’s domestic industrial capacity, the EU’s Domestic Markets Commission said.
Thierry Breton said the Commission is discussing tools to address the shortfall and “enhance supply security” as part of the EU’s planned tip law. industry.. He pointed out the US emergency authority to prioritize the domestic industrial needs contained in the US Defense Production Act as a possible model.
This coincided with the surge in public spending on semiconductors by member states and the EU, “balanced” with the US’s $ 52 billion planned investment in its semiconductor sector, Breton said in Brussels.
One of the measures is public investment in a new semiconductor “pilot line” in Europe. This allows companies to turn new technologies into large-scale production.
This plan is part of the EU’s goal of doubling its share of the global chip market to 20% by 2030. This project is endorsed by Brussels as part of a broader “strategic autonomy” agenda as Block seeks to mitigate vulnerabilities. Supply chain disruption.
Brittany, the French commissioner, emphasized the need for action, coupled with the supply shortages that plague the semiconductor industry and the growing need for computing power for the EU to plan its digital and green transitions.
He describes the next chip law, which the Commission plans to announce next month, as “a major initiative for our industry, our economy, and our strategic interests,” cutting-edge semiconductors. Asia warned that the sector would be characterized by a “huge overconcentration”.
However, the scale of public funding that the EU plans to invest in semiconductors has created fear of waste. Subsidy race..
Some industry insiders focus on key areas of competitive advantage within complex global semiconductor supply chains, rather than trying to build large, high-end manufacturing capabilities that exist elsewhere. I insist that it should be.
Breton said the EU had an outstanding position in semiconductor research, but not so strong in design and packaging, and Europe did not manufacture state-of-the-art chips. According to him, the goal was for Europe to produce state-of-the-art semiconductors, including chips less than 5 nanometers.
According to the Commission, national aid regulations need to be adapted to large-scale investments in state-of-the-art semiconductor capacities. Among the companies that the EU is aiming for Woo Will announce a new chip manufacturing plant in Europe at Intel.
The EU is also monitoring the semiconductor supply chain and discussing mechanisms to respond to the turmoil.
The US Defense Production Act, deployed by the White House during the Covid-19 crisis, cracked down on hoarding, restricted the export of certain commodities, and prioritized the production of critical goods.
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