Author: Xinguang Dog
TYPESETTING: LEAHMA
Exhibit: SOlab
In-depth good text, 1976 words = 3 minutes of reading
On January 24, the Industry and Energy Committee of the European Parliament voted overwhelmingly 67 in favor and 1 vote against to adopt the draft EU chip law and the amendments proposed by various parliamentary groups!
Thierry Breton, Commissioner for the Internal Market: "We fully agree with the goal of depriving China of the most advanced chips, we cannot give China access to the most advanced technology. The United States has made the EU's "comprehensive" commitment to the goal of containing China's semiconductor industry.
EU chip concept map Source: Baidu
The development process of the European Chip Act
The European Chip Act, which is scheduled to be published on February 8, 2022, currently relies heavily on overstretched member state budgets, already allocated EU funds, and uncertainty over easing state aid rules to fund cutting-edge production sites.
On February 8, 2022, the European Union launched the Chip Act: the ambition of technological "strategic autonomy" may encounter many constraints.
In May 2022, Laith Altimimime, President of SEMI Europe, said: "The rapid passage of the European Chip Act will greatly accelerate the pace of attracting investment in Europe to build chip manufacturing capacity and R&D. ”
On November 23, 2022, EU member states agreed to invest more than 43 billion euros in the development of the chip industry, aiming to support local chip supply chains and reduce dependence on US and Asian manufacturers.
The European Chip Act envisages that by 2030, the EU will invest around 45 billion euros to support chip production, pilot projects, start-ups, and most importantly, large-scale chip manufacturing plants.
EU organization Source: Baidu
Core content
The "Chip Act" hopes to expand the proportion of EU chip production capacity in the global market by increasing investment and strengthening research and development. According to the bill, the EU intends to use more than 43 billion euros of public and private funds to enable the EU to produce 20% of the world's chips by 2030.
At present, the European Union produces chips that account for less than 10% of the global share. The bill needs to be approved by EU member states and the European Parliament before it can enter into force.
The CHIP Act includes an "EU Chip Initiative" that will bring together relevant resources from the EU and its member states and third countries and establish chip funds to ensure security of supply. The provisions of the bill also include a mechanism to monitor the export of chips produced in the EU, which can control chip exports in times of crisis; Emphasis on strengthening EU R&D capabilities in the chip sector, allowing the state to support the construction of chip production facilities and supporting small start-ups.
EU headquarters in Brussels Source: Baidu
Highlight interpretation
"Chip diplomacy" with the United States, Japan, South Korea and Taiwan
In addition to promoting semiconductor R&D and innovation, setting early warning indicators for supply chain crises, etc., the European Chip Act passed this time also has provisions on third-party cooperation.
Article 7 of the European Chip Act states that due to the global nature of the semiconductor supply chain, cooperation with third parties is an important condition for the EU to seek the resilience of the semiconductor ecosystem, so the Executive Committee should establish partnerships with third parties with the assistance of the European Semiconductor Board. Several lawmakers, including Nicola Beer, vice president of the European Parliament, who visited Taiwan in 2021, have proposed similar amendments to the article to explicitly include "third-party cooperation", including Taiwan, the United States, Japan and South Korea.
STMicroelectronics Source: Baidu
Giant attitude
March 16, 2022 Intel CEO Pat Geisinger said, "The investment we plan to make is a significant step for both Intel and Europe. The EU Chips Act will empower private companies and governments to work together to significantly enhance Europe's position in the semiconductor industry. ”
Intel introduced that the core of the investment plan is to balance the global semiconductor supply chain, while significantly expanding Intel's production capacity in Europe.
Intel Corporation Source: Baidu
Review of the Japan-Korea Chip Act
South Korea's "K-Semiconductor Strategy" with an investment of 510 trillion won over 10 years
On May 13, 2021, the South Korean government announced its "K-Semiconductor Strategy" to increase the deduction rate for investment in semiconductor companies' facilities by up to 20% and R&D investment to 50%. The government first decided to set up a new "core strategic technology (tentative) runway" in the tax relief for enterprises, and give greater tax incentives than the current system for R&D investment by enterprises belonging to this field. Investment in core strategic technology facilities and pre-commercialization mass production facilities will also be included in the scope of investment.
Samsung 5G chip concept map Source: Baidu
Japan establishes "Semiconductor Digital Industry Strategy"
On June 4, 2021, Japan completed the research and compilation of semiconductors, digital infrastructure, and digital industry strategies, and established a semiconductor digital industry strategy aimed at expanding domestic production capacity.
Japan will strengthen cooperation with overseas to jointly develop cutting-edge semiconductor manufacturing technologies and secure production capacity; Accelerate digital investments to enhance cutting-edge logic semiconductor design and development; Optimize the layout of the domestic semiconductor industry and strengthen industrial resilience.
Conceptual diagram of Japan's chip plan Source: Baidu
In summary, comparing the chip bills of various countries, its significance is self-evident, it will help the development of domestic technology, invest huge funds, improve the manufacturing and research and development capabilities of the domestic chip industry, and use it to develop the independent chip industry, aiming to support the local chip supply chain and reduce dependence on foreign manufacturers.