Semiconductors: Brussels wants to plough billions into making more microchips in the EU
In a bid to help the EU catch up with the increasingly competitive global tech race, Brussels has unveiled a massive subsidy programme for semiconductors, the chips that power all sorts of electronic devices and have become a precious commodity in the midst of supply chain disruptions.
Under the name EU Chips Act, the European Commission plans to allocate €11 billion in public funds for the research, design and manufacturing of semiconductors, with the goal of mobilising a total of €43 billion of public and private investment until 2030.
The €11 billion will come from existing EU instruments, such as the research programme Horizon Europe and the recovery fund (Next Generation EU), and the financial plans that member states plan to roll out at the domestic level. Reaching the €43 billion mark will depend on how attractive the EU becomes for private investors.
In 2020, the bloc attracted only 3% of global investment for chip factories, but last year Intel Corp said it was willing to invest over €80 billion in Europe's semiconductor industry over the coming years.
The European Commission's ultimate goal is to expand the EU's global market share from the current 9% all the way to 20% by 2030, an ambitious target that will become harder to achieve as worldwide demand intensifies and governments become more generous in injecting direct support.
"Securing the supply in the most advanced chips has become an economic and geopolitical priority," said Thierry Breton, EU Commissioner for the internal market.
The announcement from Brussels comes mere days after the US House of Representatives passed a legislative package that includes $52 billion (€45.5 billion) in grants and subsidies to boost America's chip production. The law has to be
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