NO MORE CRISIS – Europe no longer wants to run out of microprocessors. This is why what is called the Chips Act was defined, a 43 billion investment plan to make the Old Continent one of the most important producers in the sector in the world. The goal is to produce the 20% of all microprocessors by 2030. In this way, disruptions in the supply chain due to the pandemic and geopolitical tensions between the US and China could be circumvented.
EUROPEAN ORDERS FIRST – The new deal will allow European countries to subsidize new chip-making equipment and chip-design facilities. In the event of an emergency, companies that will receive the funding they will have to give priority to orders received from the European government. The agreement, concluded after 14 months of negotiations between the parties, will become law once it is approved by the European Parliament and by the member countries of the Union and consequently published in the Official Journal.
CUTTING-EDGE CHIPS – Currently theEurope produces about 10% of the world’s microprocessors, mainly intended for the automotive industry. The European Union therefore intends to double the share by 2030, offering subsidies in particular for the production of cutting-edge chips. “Europe is taking its own destiny into its own hands. By mastering the most advanced chips, the EU will become an industrial powerhouse in the markets of the future,” wrote the head of the European Union’s internal market, Thierry Breton on Twitter.
IT IS NOT ENOUGH – However, there are critics who argue that i allocated funds are not sufficient to reach the 20% target. The concern is that the industry will become more cautious about costly investments of this type, due to declining demand for chips and the rising cost of energy across Europe. “The Chips Act cannot be the only act to encourage investment”, underlined Eva Maydell, main negotiator of the package of measures in the European Parliament.
