EU takes on US and Asia with USD47bn chip subsidy plan

• The European Union on Tuesday agreed to a EUR43bn (USD47bn) plan for its semiconductor industry in an attempt to catch up with the United States and Asia and start a green industrial revolution.
• The EU Chips Act, proposed by the European Commission last year and confirmed by Internal Market Commissioner Thierry Breton, aims to double the bloc’s share of global chip output to 20% by 2030 and follows the US Chips for America Act.
• Europe will need to quadruple its production to meet this target. Asian companies, especially firms in China and Taiwan, currently dominate the manufacture and export of semiconductors.
• Funding will come from existing EU budget money and the deal will also loosen state aid rules to spend money on developing centres to produce the key component.
• EU chief Ursula von der Leyen said the deal “will allow for a competitive chips industry and build the foundation for a global market share. It will power a clean tech industry made in Europe and strengthen our digital resilience and sovereignty.”

External Link : https://www.scmp.com/news/world/europe/article/3217509/eu-takes-us-and-asia-us47-billion-chip-subsidy-plan