The EU has announced plans to invest €15bn towards returning microchip manufacturing to Europe, to make the continent less reliant on foreign powers like China.
The announcement was made by the European Commission this week, which said that the move was necessary to prevent future supply chain disruptions.
“The European Chips Act will be a game-changer for the global competitiveness of Europe’s single market,” EU president Ursula Von Der Leyen said.
“In the short term, it will increase our resilience to future crises, by enabling us to anticipate and avoid supply chain disruptions. And in the mid-term, it will help make Europe an industrial leader in this strategic branch.”
In addition to this, Von Der Leyen indicated her desire for Europe to become a more significant player in the global semiconductor market, with a goal of gaining at least 20% of the global market share by 2030.
The announcement comes as the world faces a crippling shortage of microchips – an essential component in many modern products – as a result of Covid pandemic restrictions around the world.
It comes as the world faces a massive shortage in microchips, with production of the essential component hitting a massive speed-bump as a result of the pandemic.
In November of last year, car sales in Europe hit a record low due to this shortage.
European leaders fear the fact that Taiwan – which on its own holds 63% of the world’s microchip market share – appears to be at risk of being invaded by China. As a result, a new emphasis on self-reliance in manufacturing is emerging.
Additionally, Intel just announced it would be building a $20bn chip manufacturing facility in the US state of Ohio.