Most of the chips now come from China and Taiwan, but that supply hasn’t been secured during the corona pandemic. Since then, and again after the Russian invasion of Ukraine, the EU has tried to become less dependent on foreign suppliers. The West and emerging world power China are increasingly facing each other, and there are growing concerns about Taiwan’s security. But Europe also doesn’t want to be dragged into an anti-China camp by the United States.
The new so-called chip regulation “will boost Europe’s semiconductor ecosystem and play a key role in boosting the EU’s competitiveness globally,” says Sweden, which presides over the EU this semester and negotiates with the parliament on behalf of the member states.
At least 20% market share in 2030
The EU’s share of the global chip market must increase by at least 20% by 2030. The union now accounts for half of it. To achieve this, Brussels is aiming for over 43 billion euros of investment from governments and private investors. Of this, €3.3 billion comes from EU funds. European gems like beloved Dutch chip machine maker ASML should be able to take advantage.
Previously, the US also spent tens of billions on the chip industry. Japan and South Korea, among others, are also investing heavily.