The European Union will allocate 43,000 million euros to fight against the shortage of chips

The European Union wants to step on the accelerator in chip manufacturing. On the one hand, to have more weight in the sector, and on the other, like many other regions, to combat the shortage of chips that is causing problems for many industries and sectors. For it has introduced the European Chips Actwith which it wants to manufacture more chips in the area, and also reduce Europe’s dependence on components made in Asia.

With this law, which reveals a plan to which will allocate some 43,000 million euros To reduce reliance on chipmaking in Asia and increase production in Europe, the EU wants the region to play to its strengths, in areas such as research and manufacturing, while trying to alleviate its weaknesses.

With this law, it is sought, for this, to promote research and development, give a boost to production and also monitor and supervise the supply of semiconductors. Also avoid problems in the chip supply chain in the future. All to also meet the objective that has been set in the EU: to double its market share in semiconductors and bring it up to 20% of world production by 2030. Of course, the law requires the approval of both the member states of the EU as the European Parliament, and involves the investment of public and private entities.

Ursula von der Leyen, President of the European Commissionhas highlighted that «The European Chip Law will be a game changer in the global competitiveness of the European single market. In the short term, it will increase our resilience to future crises, as it will allow us to anticipate and avoid supply chain disruptions. And in the medium term, it will help turn Europe into an industrial leader in this strategic branch«.

This law follows another approved in the United States, the America Competes Act, approved by the US House of Representatives, with which 52,000 million dollars will be allocated in subsidies for the manufacture of semiconductors, as well as almost 300,000 million dollars for research. and development.

This implies on the one hand that both the United States and Europe want to compete seriously with Asia to attract semiconductor manufacturers. It also wants to promote the manufacture of semiconductors in many regions, with the aim not only that there will be no more problems due to the shortage of chips in the future, but also to reduce dependence on Asia to obtain them.

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