Representatives of the member states of the European Union and the European Parliament have agreed on the final conditions of a standard aimed at responding to the shortage of semiconductors, which are crucial for producing cars and electronics.
The EU aims to double its share of global semiconductor production to 20% by the end of the decade and support the development and production of these components with investments of €43 billion (approximately CZK 1 trillion).
In the past two years, European companies, like the rest of the world, have struggled with a shortage of semiconductors. This was due to production constraints related to the COVID-19 pandemic and a sharp increase in demand during the subsequent economic recovery.
European countries depend on semiconductor imports, particularly from Taiwan and other Asian countries. As a result, the European Commission proposed a standard known as the Chips Act, intended to reduce this dependency and attract chip manufacturers to Europe.
“This agreement is of the utmost importance for the green and digital future and, at the same time, ensures the EU’s resilience in turbulent times. The new rules represent a real revolution for Europe in the key semiconductor sector,” said Ebba Busch, Sweden’s Minister of Trade and Industry.
The EU plans to use the mentioned €43 billion of public and private funds to support developing, producing, and ensuring the supply of semiconductors. €3.3 billion will come directly from the EU budget as part of the Chips for Europe initiative, which focuses primarily on research and development of new technologies. Other funds will support private investments in chip production for member states.
The European Union also aims to monitor any semiconductor shortages better and coordinate crisis responses more effectively by agreed-upon rules.