EU Locks in $47 Billion Investment Plan for European Chips Act

[T0@st]

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."

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[john_]

- This is a wafer and we intent to add chocolate milk to it.

 

[Fishymachine]

So basically we are paying Samsung or TSMC to build a single fab, or a few "mature" ones, and not say give SMT, Philips, NXP, Siemens, Ericsson, or even some start-up money to create an European EUV node. At least if Winnie the Poo or Kim do invade we'll have one foundry and it's operators

Edit: nope, just pay the academia to make POCs in university campuses

 

[Space Lynx]

this is dumb, EU should have just worked with USA to help build them in USA, in exchange for discount on the chips or something.

throw 5 billion to USA to scratch their back

done. easy.

back to civilization V i go

 

[john_]

to help build them in USA

That would have been dumb. I mean, US was using malware to spy on European companies and politicians. European companies where getting ready to bid for a contract and US companies had the counteroffer ready to outbid them, knowing in advance what those European companies would be offering. Being allies means nothing in being independent from others when mountains of money are involved. And looking at how US blacklists Chinese companies to stop China from advancing, what would be stopping US to put roadblocks in European high tech companies? "Oh, about your CPU that runs circles around our USA offerings. Well, yeah, yields are bad. Don't know why".

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.

 

[Deleted member 185088]

More of realpolitik and less childishness.

 

[Space Lynx]

That would have been dumb. I mean, US was using malware to spy on European companies and politicians. European companies where getting ready to bid for a contract and US companies had the counteroffer ready to outbid them, knowing in advance what those European companies would be offering. Being allies means nothing in being independent from others when mountains of money are involved. And looking at how US blacklists Chinese companies to stop China from advancing, what would be stopping US to put roadblocks in European high tech companies? "Oh, about your CPU that runs circles around our USA offerings. Well, yeah, yields are bad. Don't know why".

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.


I'll send you my address. Can you send me a sandwich? Damn, what are you talking about?

I mean having your own fabs won't stop the US doing that, lol

 

[john_]

I mean having your own fabs won't stop the US doing that, lol

So, you see? You admit that you can't trust US
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.

 

[the54thvoid]

Let's keep it on topic. This isn't about food.

 

[Jism]

So, you see? You admit that you can't trust US
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.

US is capable of building in Backdoors, China is, what makes EU so different?

 

[john_]

US is capable of building in Backdoors, China is, what makes EU so different?

Have I said that EU wouldn't build backdoors? Nope.

But to answer your question, it is better to have your own backdoors in your own hardware, isn't it?

 

[R0H1T]

Fab companies/executives right now

Spoiler

 

[dyonoctis]

So basically we are paying Samsung or TSMC to build a single fab, or a few "mature" ones, and not say give SMT, Philips, NXP, Siemens, Ericsson, or even some start-up money to create an European EUV node. At least if Winnie the Poo or Kim do invade we'll have one foundry and it's operators

Edit: nope, just pay the academia to make POCs in university campuses

Even with lots of money, making a bleeding edge node is no easy feat, IBM and GF eventually gave up, intel is struggling since 14nm, samsung is the next best thing, but they still got trouble to pull clients away from TSMC. That would be billion of euro spend on a bet that might be a failure.

this is dumb, EU should have just worked with USA to help build them in USA, in exchange for discount on the chips or something.

throw 5 billion to USA to scratch their back

done. easy.

back to civilization V i go

The whole point is to not depend on an external actor. On the long run it's never going to be as convienent as having a fab that isn't across the Atlantic Ocean, and from a different economic area that still got its own interest at heart. The EU doesn't want "leftovers".

 

[Space Lynx]

The whole point is to not depend on an external actor.

you mean like relying on slave labor in the Congo for the coltan mineral to make all the electronics work?

 

[ThrashZone]

Hi,
Guess they saw Germany getting low balled so they got 280 billion ready Freddy

Let's keep it on topic. This isn't about food.

Not even food for thought

 

[dyonoctis]

you mean like relying on slave labor in the Congo for the coltan mineral to make all the electronics work?

That's a real issue, but NA, Asia, and the EU are all guilty since this is where the materials that they needs comes from.
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 . 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)

 

[the54thvoid]

I've deleted a couple of posts. Stick to the topic. Moaning about the EU isn't it. Moan about tech, by all means.

 

[kondamin]

Right now Europe needs cheap energy and water more than it needs a domestic chips producer.

Not that 45 billion euro's is all that much compared to what the US and China have been pumping in their domestic production.