BRUSSELS, Belgium: The European Union has announced a $ 48 billion plan, known as the “Chips Act”, which will allow Europe to become a major semiconductor manufacturer and reduce its dependence on Asia.
Semiconductor chips help power everything from cars to hospital fans and game consoles.
As the shortage of natural gas and Europe’s dependence on Russia for energy highlight the political risks of economic dependence, the Union is going to increase its economic independence in the critical semiconductor sector.
“Chips are at the heart of the global technological race. Of course, they are also the foundation of our modern economies,” said European Commission President Ursula von der Leyen.
The plan still needs the approval of the European Parliament and the 27 member states of the Union.
As the economies recover from the covid-19 pandemic, a semiconductor supply chain bottleneck has been underway.
“The pandemic has also painfully revealed the vulnerability of its supply chains. We have seen entire production lines stop. While demand increased, we were unable to supply as needed due to the lack of chips,” von der Leyen said.
According to Von der Leyen, the action, worth € 43 billion, will link research, design and testing, and coordinate EU and national investment.
The European Commission promised that related projects will be carefully scrutinized on anti-competitive grounds, despite the large size of setting up production facilities requiring a push if the bloc is to become a global player.
“Europe needs advanced production facilities, which of course come at a huge cost in advance. We are therefore adapting our state aid rules,” said von der Leyen.
EU member states currently account for only nine percent of the global semiconductor market share, although von der Leyen wants to increase this figure to 20 percent by 2030.
The plan will add € 15 billion in public and private investment, in addition to the funds already allocated to the EU budget, she added.
Source: sn.dk