It was within the framework of the World Economic Forum that Ursula von der Leyen, President of the European Commission, promised “the publication of a law next month”, to stimulate the production of semiconductors within the Union. The president assures that with the measures that will be taken, European production will quadruple by 2030.
Ursula von der Leyen wants to quadruple chip production in Europe by 2030
In her speech, Ursula von der Leyen returned to the fact that “Europe is the world’s center for semiconductor research and very well placed in terms of the materials and equipment needed to run large chip factories”. However, it is clear that Europe’s global market share in semiconductors is only 10% today…
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According to the President of the Commission, “Most of our supplies come from outside Europe. It is a dependency and an uncertainty that we cannot afford”. It is to respond to this problem that the European Commission will propose next month, at the beginning of February, new legislation aimed at making the European continent a “center of expertise and chip manufacturing”.
Ursula von der Leyen wants quadruple European production manufacturers with the aim of increasing Europe’s market share in global chip production to 20% by 2030. This will involve state aid for the construction of production facilities “one of a kind”. Today, most supplies come from a handful of growers outside of Europe. The President of the Commission wants to build European supply chains in order to rebalance the market.
TSMC, Samsung and UMC generate 77% of global revenue
The three main global manufacturers, TSMC, Samsung and UMC, do not have a presence in Europe, the bulk of their production is based in Asia and, to some extent, in the United States. These three Asian giants accounted for nearly 77% of global foundry revenue in the third quarter of the year 2021. According to Ursula von der Leyen “European chip needs will double over the next decade”. This is why Europe must radically raise the level of production.
Global semiconductor production could double in the next few years. Early indications of the law suggest the Commission could enable governments to unlock billions of euros in funding to encourage chipmakers to do more business in the EU. Like Europe, the United States and China also prioritize semiconductors and focus on localizing supply chains. The Union is also seeking to strengthen its infrastructures with local actors.