The Council of the European Union (EU), which brings together the Member States, approved on Tuesday the new chip law that aims to boost the semiconductor sector in the community space, mobilizing 43,000 million euros of public and private investment.
In a statement, the structure informs of this green light, the last stage of the decision-making process on the regulation, indicating that the objective is to “create the conditions for the development of a European industrial base in the field of semiconductors, attract investment, promote research and innovation and prepare Europe for a possible future supply crisis of ‘chips'”.
According to the Council of the EU, the new community legislation will allow “mobilizing 43,000 million euros of public and private investment -3,300 million euros from the EU budget- with the aim of doubling the EU’s global market share in the semiconductor sector”, going from the current 10% to at least 20% in 2030, the EU objective.
Now, the regulation must be signed by the presidents of the Council and the European Parliament before it can enter into force.
The ‘chips’ are small devices made up of materials capable of allowing or blocking the flow of electricity, the so-called semiconductors, and capable of storing large amounts of information or performing mathematical and logical operations.
They are essential for products such as credit cards for cars or mobile phones, at a time when technologies such as artificial intelligence and 5G networks are being developed.
Today’s ‘green light’ comes after, in mid-July, the European Parliament approved a legislative initiative to guarantee the supply of ‘chips’ in the EU, in support of 3,300 million euros.
Currently, the EU produces less than 10% of semiconductors worldwide, so this legislative initiative aims to double this commitment.
In February 2022, the European Commission proposed a regulation to respond to the semiconductor crisis, which at the time affected the manufacture of equipment and automobiles, after the impacts of the Covid-19 pandemic.
The aim is, with European investment, to mobilize more than €43 billion of public and private investment and to prevent and respond rapidly to any future disruptions in the supply chain, with a view to the EU achieving its ambition of doubling its current market share to 20% by 2030.
Semiconductors are integrated circuits that allow electronic devices, such as mobile phones, microwaves, or elevators, to process, store, and transmit data.
The production of ‘chips’ continues to be crucial for the automotive industry. With factories shutting down and demand for electronic equipment rising during the pandemic, a semiconductor crisis was created, leading to long delays in deliveries and high losses for car and computer manufacturers, a situation the EU does not want to have again.
Source: TSF
