Europe takes microchips in its own hands

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Many industries are currently impacted by the global semiconductor shortage, which is largely caused by the pandemic and the trade war between the United States and China. The European Union has decided to be proactive, and intends to invest in the manufacture of chips on European soil. In its new Digital Compass plan announced on Tuesday, aimed to stimulate “digital sovereignty” by funding various high-tech initiatives, the EU set a goal of doubling its production of chips to reach 20% of the world market by 2030. As with strategic resources such as petroleum, chip access is essential for many industries and products, from phones to cars to home appliances. Currently, most of the production is concentrated in Asia, notably Taiwan and South Korea, upon which the rest of the world is entirely dependent. The current crisis, reminiscent of an oil shortage, has made many nations realize how tenuous their supplies are. On the American front, President Joe Biden signed an executive order in February to study how the United States can further support its own chipmaking industry.

⇨ Ars Technica, James Vincent, “EU aims to double chip manufacturing amid growing fears about ‘digital sovereignty’.”

2021-03-10