Wednesday, April 19th 2023
EU Locks in $47 Billion Investment Plan for European Chips Act
The European Union yesterday (April 18) has announced a substantial investment of $47 billion (€43 billion) as part of its already established plan to support native semiconductor industries. The European Parliament and EU member states have agreed upon new measures to boost the supply of semiconductors in Europe, as the bloc navigates a solution to reduce its dependency on manufacturers located in Asian territories. Thierry Breton, Commissioner for Internal Market of the European Union, released his own statement about the agreement: "We have a deal on EU Chips Act! In a geopolitical context of de-risking, Europe is taking its destiny into its own hands. By mastering the most advanced semiconductors, EU will become an industrial powerhouse in markets of the future."
China and Taiwan are currently the dominant nations in the field of manufacture and export of semiconductor products. The European Union is also playing catch-up with North America, where the United States Chips and Science Act has been effect since last summer - around $280 billion in new funding will be meted out over time to boost domestic research and development, as well as manufacturing of semiconductors in the USA. Governing bodies around the world are shoring up domestic silicon-based manufacturing efforts in order to reduce reliance on products sourced from Asia - where supply chain issues and manufacturing delays have caused global shortages of essential electronic goods.
A key segment from the European Commission's official statement states: "To respond to critical dependencies, the European Chips Act will strengthen manufacturing activities in the Union, stimulate the European design ecosystem, and support scale-up and innovation across the whole value chain. Through the European Chips Act, the European Union aims to reach its target to double its current global market share to 20% in 2030. The first pillar of the Act - the Chips for Europe Initiative - will reinforce Europe's technological leadership, by facilitating the transfer of knowledge from the lab to the fab, bridging the gap between research and innovation and industrial activities and by promoting the industrialization of innovative technologies by European businesses."
Sources:
Reuters, Bloomberg, European Commission Statement, Thierry Breton Tweet
China and Taiwan are currently the dominant nations in the field of manufacture and export of semiconductor products. The European Union is also playing catch-up with North America, where the United States Chips and Science Act has been effect since last summer - around $280 billion in new funding will be meted out over time to boost domestic research and development, as well as manufacturing of semiconductors in the USA. Governing bodies around the world are shoring up domestic silicon-based manufacturing efforts in order to reduce reliance on products sourced from Asia - where supply chain issues and manufacturing delays have caused global shortages of essential electronic goods.
17 Comments on EU Locks in $47 Billion Investment Plan for European Chips Act
- This is a wafer and we intent to add chocolate milk to it.
Edit: nope, just pay the academia to make POCs in university campuses
throw 5 billion to USA to scratch their back
done. easy.
back to civilization V i go
With ASML being in Europe, Europe needs factories to try to take advantage of this. Factories that in time will be competing with TSMC, Intel and Samsung. It might take 10-30-50 years, it doesn't matter.
In any case, having those fabs in your country is better than having them somewhere else and be always dependent on someone else. Imagine China having all it's fabs in US. :laugh:
But to answer your question, it is better to have your own backdoors in your own hardware, isn't it?
Guess they saw Germany getting low balled so they got 280 billion ready Freddy :laugh:Not even food for thought ;)
Now this is about chips manufacturing independence, which is critical when the entire world depends on it. I mean, the US did the same thing, for the exact same reason. All I can read is an American patriot looking out for himself, which is exactly why the E.U want to do their own chips act :D. You wouldn't want the US to be depended on the EU either. (Although because of us you guys will get iPhones with USB-C, and side loading on iOS)
Not that 45 billion euro's is all that much compared to what the US and China have been pumping in their domestic production.