EU chip industry in danger: urgent need for action required!

EU chip industry in danger: urgent need for action required!

Europa, EU - European industry faces a massive challenge in the semiconductor sector. According to a report of the europa-muss- Mehr-Mehr-Mikrochipsproduc, the EU is expected to achieve its goal of reaching a share of 20 percent in the global market for microchips by 2030. The report published on Monday emphasizes that a variety of factors, including inadequate investments by the EU Commission, are difficulties in access to raw materials and high energy costs, inhibiting elements for the microchip industry.

The importance of microchips, which represent essential electronic components in a variety of devices, became particularly obvious during the Corona pandemic, when a global lack of dependence on these technologies illustrated. In its strategy for the digital decade, the EU Commission has formulated the ambitious plan to achieve a value of 20 percent in the global production of state-of-the-art microchips by 2030.

investments and competition

The Member States and industry, however, have to apply a significant part of the required investments. At the moment, the EU Commission has only provided 5 percent of the funds of around 86 billion euros planned in the Chip Act by 2030. Annemie Turtelboom, member of the Court of Auditors, calls for a “reality check” of this strategy and warns particularly against the growing competition from the USA and China.

The lack of clear targets and opportunities for monitoring the strategy are also criticized. Between 2020 and 2023, leading chip manufacturers mobilized a total of 405 billion euros in investments. But without a coordinating mandate of the EU Commission, national investments are difficult to control.

global challenges and technical necessities

Global demand for microelectronics has increased with the increase in digitization. Semiconductors are not only indispensable for consumer goods such as mobile phones and television, but also for complex systems such as autonomous vehicles. In fact, over 1200 microchips are installed in a modern electric car. The USA, Taiwan, South Korea and Japan together hold around 70 percent of global semiconductor production. In 2020, 63 percent of the global foundry capacity in Taiwan.

The geopolitical tensions, especially between China and Taiwan, give the topic of additional explosiveness. Companies are forced to take measures against interruptions in the global delivery streams in order to maintain production and remain competitive. The EU also shows efforts to strengthen its semiconductor industry through the EU-chips act . This aims to mobilize investments and increase the production capacities to 20 percent of the global market by 2030.

Another important instrument for promoting the semiconductor industry is the IPCEI program, which is intended to co-finance cross-border projects for innovation in microelectronics. This program has already provided considerable public funds in the past and will continue to be used in the planning of innovative chipabilities.

The challenges in microelectronics are not only financial but also technical in nature. The production of microchips comprises thousands of individual steps that are internationally interlinked. The need for safe and resource -saving production processes is becoming increasingly urgent in industry. The transformation towards more environmentally friendly and more efficient microelectronics is already in full swing, but crucial political support remains essential.

The future of microchip production in Europe is both an economic and a geopolitical topic. The necessary progress can only be achieved with suitable measures and the cooperation between EU member states and industry.

In order to obtain further information on the investment plans and strategic goals of the semiconductor industry in Germany and the EU, the following articles are helpful: BMWK and bpb.de .