On Wednesday (November 23) local time, EU member states agreed to invest more than 43 billion euros (about 320.801 billion yuan) to develop the chip industry, aiming to support the local chip supply chain and reduce the dependence of 27 EU countries on American and Asian manufacturers.
In February this year, the European Commission released the closely watched Chip Act, which plans to significantly increase the EU's share of chip production in the world. Europe's share in chip production has declined from 24% in 2000 to 8% today, while the Chip Act aims to increase this figure to 20% by 2030
The Act aims to ensure that the EU has the necessary tools, skills and technical capabilities to improve the advanced chip design, manufacturing, packaging and other fields, so as to ensure the stability of the EU's semiconductor supply chain and reduce external dependence.
When European Commission President Von Delain launched the plan in February, he said that the Chip Act could change the EU's global competitiveness. In the short term, it will enable the EU to predict and avoid supply chain disruption, while in the medium term, it can help the EU become a leader in the chip market.
The Czech Republic, the rotating presidency of the European Union, said on Wednesday that envoys from all countries agreed to the revised version of the European Commission's proposal, which includes allowing the government to subsidize a wider range of chips, not just the most advanced chips. The subsidy will cover chips that bring innovation in computing power, energy efficiency, environmental benefits and artificial intelligence.
The latest version also adds restrictions on the European Commission to prevent the agency from interfering in the company's supply chain when triggering an emergency.
EU ministers will meet on December 1 local time and are expected to approve the chip plan. However, the plan still needs to be approved by the European Parliament next year before it can become law.
Although this plan will not be finalized until next year, many companies have announced plans to build chip factories in Europe, including Intel, Lattice, STF Semiconductor and Infineon.