The European Commission has proposed chip law, that aims to ensure the security of the supply chain and establish the EU’s leading role in semiconductor technology, mobilizing 43 billion euros in public and private investments in this strategically important sector.
European Commission President Ursula von der Leyen stated that the EU’s goal is to increase its share of global chip production to 20 percent by 2030, up from the current 9 percent. With demand expected to double by 2030, this means a fourfold increase in production in Europe.
– The chip law will short-term increase our resilience to future crises, allowing us to anticipate and avoid disruptions in the supply chain. In the medium term, it will help Europe become an industrial leader in this strategic branch – von der Leyen stated.
Chips are an indispensable component in today’s digital age, powering everything from smartphones and electric scooters to trains.
The shortage of computer chips caused by the coronavirus pandemic is affecting a range of industries, with the automotive sector and the smartphone, computer, gaming console, refrigerator, washing machine, dishwasher, television, and all electrical devices industries being the hardest hit.
Chips today are what steel was in the 20th century, the most important sector in which Europe does not want to lag behind. Most production is in Asia, with approximately 50 percent of the world’s total microchips and up to 95 percent of the most advanced chips coming from Taiwan. A potential Chinese invasion of Taiwan, which it considers part of its territory, would further complicate Europe’s access to chips.
