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EU plan to increase chip production

Ursula von der Leyen, President of the European Commission, said, "We aim to reach 20 percent of Europe's share in global chip production by 2030." said.

EU plan to increase chip production

Ursula von der Leyen, President of the European Union (EU) Commission, stated that they aim to increase Europe's share in global chip production to 20 percent by 2030.

Von der Leyen made evaluations about the "European Chip Law" proposal they prepared at the press conference he held in Brussels.

Stating that the EU Commission accepted the chip law today, von der Leyen said, "With the chip law, we are combining the investment legislation framework and the necessary strategic partnerships to make Europe a leader in this market." said.

Von der Leyen, emphasizing that the global demand for chips is increasing rapidly, "Chips are at the center of the global technology race today." used the phrase.

Stating that chips are the cornerstone of modern economies, von der Leyen reminded that chips are included in products used every day, from smartphones to washing machines and automobiles.

"The epidemic has painfully exposed the fragility of chip supply chains. The global chip shortage has slowed the economic recovery," von der Leyen said. he said.

"We want to make Europe an industrial leader in this market"
Stating that they want to increase the resistance against future supply crises with the chip law and make Europe an industrial leader in this very strategic market, von der Leyen said, "We aim for Europe's share in global chip production to reach 20 percent by 2030." said.

Von der Leyen said that Europe's current share of chip production is around 9 percent, and that global demand will double in 2030.

"The law will provide additional public and private sector investment of 15 billion euros in the chip field by 2030"

Expressing that the chip law will support the EU target with significant investment, von der Leyen said, "The law will provide an additional 15 billion euros in public and private sector investment in the chip field by 2030." said.

Von der Leyen noted that the EU and member countries are planning an additional 30 billion euros in public investment in chip investments.

Von der Leyen, who stated that the law will also support research and laboratories in the chip field, said, "Europe needs advanced production facilities with a large upfront cost." said.

Von der Leyen said they will also align EU public support rules with investment in chip facilities.

EU's plan
The said EU plan envisages mobilizing a total of 43 billion euros of public and private sector investment in the chip field.

Today, chips are in many technological products, from smartphones to cars. Most of the chip production takes place in Asian countries. Nearly half of global chip production and nearly all of the advanced chips are made in Taiwan.

The US and China have also set similar chip strategies to the EU.

Chip factories are among the investments with very high costs. After these facilities are established, they produce uninterruptedly.

An entry-level chip manufacturing facility costs $15 billion. Chip factories are considered obsolete in about 5 years due to technological progress.

Currently, Intel of the USA, Samsung of South Korea and TSMC of Taiwan are in the first places in chip production.

 

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