The European Union (EU) unveiled a plan to quadruple the supply of semiconductors in Europe by 2030, hoping to limit the bloc’s dependence on Asia for a key component used in electric cars and smartphones.
- The production of chips has become a strategic priority in Europe as well as the United States, after the shock of the pandemic choked off supply, bringing factories to a standstill and emptying stores of products.
- The manufacturing of semiconductors overwhelmingly takes place in Taiwan, China and South Korea and the European Union wants factories and companies inside the bloc to take on a bigger role.
- The highly anticipated EU Chips Act will “mobilise more than €43 billion ($49.1 billion) of public and private investments” and “enable the EU to reach its ambition to double its current market share to 20% in 2030”.
- The proposal will need the approval of the EU member states and European Parliament, where opinions will vary between the ambitions of industrial heavyweights such as Germany, France and Italy and those of smaller states that are worried about closing off valuable supply chains with Asia.