Friday, September 17, 2021

EU must offer €20bn if it wants more chip production, says Soitec chief

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Semiconductor renewal

According to the head of France’s leading semiconductor materials supplier, the EU needs to provide at least € 20 billion in subsidies to “move the needles” in computer chip manufacturing.

Paul Boudre, CEO of Soitec, a € 7 billion supplier of silicon wafers used to manufacture chips, told the Financial Times that Europe was able to build an important sovereign supply for chips. “But is it going to play? That’s the answer we’ve been waiting for,” he said.

In recent months, chip shortages have put pressure on industries from car manufacturing to consumer electronics, and the EU says it is interested in doubling domestic production to 20% of the global market by 2030.

Earlier this year, EU internal market commissioner Thierry Breton told FT that Block’s € 800 billion next-generation EU economic recovery plan provided a unique window for member states to allocate investment to the chip sector. ..

To date, limited financial support has been provided. Meanwhile, the United States is completing a $ 52 billion subsidy package for chip makers.

Boudre said EU chip makers such as Infineon, Bosch and STMicroelectronics need to receive “equivalent features and support available elsewhere in the world” in order to gain a larger share of the global market. ..

He added that the € 20 billion package should be strategically directed to the manufacture of products for which the continent already has expertise. This includes the market for chips larger than 22 nanometers instead of the currently state-of-the-art small chips, and will expand to the market for 22nm to 10nm products over the next three years.

“If you go down to 10nm, you have the skills and the capacity,” Boudre said, and smaller chips up to 2nm in size are more powerful, faster, and more expensive to manufacture, mainly in China, Taiwan, Japan, USA.

Soytech’s share price rose one-third this year as the pandemic curtailed chip supply, supercharged demand from tech companies and pushed up prices. Most of the chip material (known as Silicon on Insulator (SOI)) is supplied to carriers for chips in smartphones, tablets, computers, and data centers.

Boudre said semiconductors will replace oil and gas as “gold for modern industry” and will be needed in every aspect of the world’s rapidly accelerating technological developments, and the industry is ready to fall into recession again after the pandemic. I rejected the idea of ​​being there.

However, Peterson Institute for International Economics trade expert Chad Brown disagreed that a $ 20 billion subsidy package from EU countries would greatly help alleviate Europe’s serious chip shortage. A race that warned that the growing trend towards government subsidies could be exacerbated by “military competition.”

Soitec, that Two biggest investors A fund owned by the states of France and China, it exports 90% of its products outside France and 65% outside Europe.

EU must offer €20bn if it wants more chip production, says Soitec chief Source link EU must offer €20bn if it wants more chip production, says Soitec chief

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