EU and U.S. pump more than $100 billion into chip production
13. Februar 2022EU and U.S. pump more than $100 billion into chip production
Brussels, Feb. 12, 2022
The European Union has proposed the Chips Act, which will provide €43 billion (€49 billion) in public and private funding to boost semiconductor production in the EU. The EU aims to double its share of global chip manufacturing from 9% to 20% by 2030.
The goal is to make Europe a leader in the semiconductor market after the pandemic exposed weaknesses in global chip supply chains, said EU Commission President Ursula von der Leyen.
The proposal includes an investment plan for research institutes, a financing scheme to support production sites and measures to address future chip shortages.
The estimated $5.7 billion in funding will come from the EU budget, less than 15% of the total cost. Member states will have to provide the rest from their budgets. The private sector would also contribute.
If adopted, the Chips Act will apply to the entire EU.
Recently, the U.S. House of Representatives passed a bill that would provide $52 billion for the country’s semiconductor industry.
About $39 billion would come in the form of direct subsidies for new chip fabs, including Intel’s $20 billion fab in Ohio and TSMC’s $12 billion fab in Arizona. Both are currently under construction.
