EU unveils $49 billion plan to deal with chip shortages

Deepak Gupta
Deepak Gupta February 8, 2022
Updated 2022/02/08 at 7:47 PM

Some jurisdictions are looking for ways to increase semiconductor production amid a global chip shortage that is affecting all sorts of industries. The European Union, for example, wants to become a bigger player in the field and announced a $49 billion plan to help you get there. The EU executive revealed the European Tokens Actwhich, in part, aims to reduce the bloc’s dependence on Asian components.

The EU believes the plan will allow Europe to build on its strengths in areas such as research and manufacturing, while addressing what it says are some of the region’s weaknesses. The legislation aims to strengthen research and development, boost production and monitor the supply of semiconductors.

The plan, which requires approval from member states and the European Parliament, involves public and private investment and aims to mitigate any future disruption to chip supply chains. The bloc also wants to double its share of the global semiconductor market to 20% by 2030.

“The European Chips Act will be a game changer for the global competitiveness of the European single market,” said European Commission President Ursula von der Leyen in a statement. anticipate and avoid supply chain disruptions. And in the medium term, it will help make Europe an industrial leader in this strategic field.”

The introduction of the Chips Act follows an effort to increase chip production in the US. This month, the House of Representatives passed the America COMPETES Act, which earmarks $52 billion in subsidies for semiconductor manufacturing, as well as nearly $300 billion for research and development. President Joe Biden plans to sign the bill into law if it passes the Senate.

Legislation on both sides of the Atlantic could lead to a battle between Europe, the United States and Asia to attract chipmakers. If lawmakers pass them, the plans should increase global semiconductor production, which will benefit the manufacturing process for medical equipment, electric vehicles and game consoles.

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