European billion-dollar plan to become less dependent on foreign chip suppliers | Economy

“The European Union must reduce its over-reliance on global microchip leaders in Asia and the United States. With the Chips Act, we are taking matters into our own hands,” Czech Minister Jozef Sikela announced the agreement on behalf of the EU Presidency. .

Chips are an essential part of today’s digital economy, but the coronavirus pandemic has highlighted the vulnerability of global supply chains. For example, the car sector is still struggling with a chip shortage, while the transition to electric cars will further strengthen demand in the future.

With the Chips Act, the EU aims to increase its share of global chip production from 10 to 20 percent by 2030. This equates to a quadrupling of production capacity, as the global market is expected to double in size by the end of the decade will be.

The plan provides for 43 billion euros in investments from European and national governments and the private sector. The financing from the European budget, which will mainly be used for research and development, is still under discussion, but European Commissioner for Internal Market Thierry Breton has no doubt that solutions will be found during the further decision-making process. After all, an agreement has yet to be found with the European Parliament, which has yet to define its position.