The Eu plans to introduce the Chip Act to increase EU chip production capacity from the current global 10% to 20% in 2030.
European Commission President von der Leyen announced the plan at the 2022 World Economic Forum video conference on the 20th, and the specific bill will be introduced in February this year.
Von der Leyen said the Chip Act will help the EU improve its chip research and development and innovation capabilities, pave the way for public support for the EU's first production facilities, improve its ability to respond to shortages and crises, and support small innovative companies. The EU aims to produce 20% of the world's chips by 2030. At present, the market expects that the global demand for chips will double by then, which means that the EU's chip production capacity should quadruple from the existing level.
Market analysis believes that the EU's Chip Act may allow more public funds for the research and production of cutting-edge chips. The EU's ultimate goal is to produce state-of-the-art 2nm chips.
In the 1990s, the European Union once accounted for more than 40% of the global chip market, but after several rounds of global industry iterations, this proportion has now dropped to about 10%.
The EU is a world leader in chip research and production equipment, but is seriously lagging behind in the production of chips. The global chip shortage that began last year has severely affected the EU's various industries, highlighting the EU's excessive dependence on foreign chip suppliers.
Major semiconductor producers around the world are currently watching Chip Expansion Plans in Europe. TSMC has previously said it would consider building its first European semiconductor factory in Germany. Intel has also said it is willing to build semiconductor factories in the European Union, but wants to receive 8 billion euros (about $10 billion) in European government subsidies.
The EU government's efforts to attract foreign chipmakers have unnerved local businesses. To this end, the EU is discussing plans to establish a European semiconductor alliance, thus bundling the interests of European local companies. The semiconductor alliance, which includes companies such as STMicroelectronics, NXP, Infineon and ASML, aims to reduce dependence on foreign chipmakers in the face of tight global supply chains.
In addition to the European Union, the United States is also promoting similar chip home manufacturing laws.
U.S. House Speaker Pelosi said Thursday that the House is close to completing legislation aimed at strengthening the U.S. semiconductor industry's response to overseas competition, and that the "chip bill" could be merged with a similar bill passed by the Senate to get passed in Congress.
According to Reuters, the bill includes $39 billion in production and R&D incentives, as well as a $10.5 billion implementation plan that includes the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program and other research and development programs. U.S. semiconductor production now accounts for 12 percent of the world's semiconductors, down from 37 percent in 1990.
But progress on the bill has stalled since it was approved by the Senate last June, despite the House's approval of a bill with similar elements.
Senator John Cornyn, Republican of Texas and the bill's sponsor, said there was an incentive to include the bill in a broader government spending plan, and lawmakers were working to complete the plan as soon as next month.
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