The EU Should Abandon Chip Nationalism

Summary:

European companies must adapt to growing risks to semiconductor supply. Rather than leaving it to businesses to manage their own risks, the EU instead wants to spend big to reduce Europe’s vulnerabilities. The centrepiece of this strategy is the EU’s Chips Act proposal, soon to be adopted by the EU law-making institutions. The Act would allow member-states to subsidise chip manufacturing plants which are ‘first of a kind’ in Europe, aiming to double the EU’s share of global production capacity to 20 per cent by 2030, including 20 per cent of cutting-edge chips. In a supply crisis, the European Commission could also force these subsidised EU chip manufacturers to reprioritise their orders, for example to meet the needs of businesses in the single market.

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ESO Records

European Commission: COM (2022) 46: Proposal for a Regulation establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act) https://www.europeansources.info/record/proposal-for-a-regulation-establishing-a-framework-of-measures-for-strengthening-europes-semiconductor-ecosystem-chips-act/

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