European Commission presents billion-dollar plan for chip production | Abroad

Semiconductors and chips are an indispensable hub of today’s economy, but Europe is very dependent on production, especially in Asia. This is even more apparent during the coronavirus pandemic and the disruption of global supply chains. The shortage has already caused many delays in the car industry, among others.

President Ursula von der Leyen had already addressed the issue in her State of the Union address last September, and on Tuesday the Commission will present its long-awaited initiative to reduce dependence on chips from other continents and increase production on European soil.

Following the example of the United States and China, the Commission intends to invest heavily. Internal Market Commissioner Thierry Breton, who has been raising a few corners of the veil in the media in recent weeks, should mobilize more than EUR 40 billion in European and national public money.

The aim is to quadruple European production by 2030. For example, the old continent should account for 20 percent of world production by the end of the decade. Europe focuses on the most advanced chips and is committed to innovation and pilot projects that should accompany the transition to the market. Breton has already made it clear that the Leuven research center Imec can also play an important role in this.

Flemish Minister of Economy Hilde Crevits says in a response that the plan of the European Commission offers “a fantastic opportunity to accelerate the conversion of Flemish expertise and knowledge into economic and social added value in Flanders and Europe”.

“We have already traveled an impressive path with Imec and, as a chip lab, Flanders is a unique partner for all global players,” says Crevits. “A broad and joint European initiative broadens the impact of our R&D investments, will help ensure our chip autonomy and enable our companies to boost their international competitiveness with the most innovative digital applications. The 6G smartphone of the day after tomorrow must be a European one with Flemish technology.”