EU Mid-Review of Microchip Law to Boost Industry Competitiveness
The EU is midway through a review of its microchip law, seeking input from member states. This process comes as the EU Commission aims to bolster the bloc's microchip industry, which is vital for sectors like automotive and AI.
The current targets are facing criticism for being too vague and lacking a clear strategic direction. Global competitors have been ramping up their investments in the microchip industry, putting pressure on the EU to step up its game.
In 2023, EU states and the European Parliament agreed to pump billions into expanding the microchip industry. However, growing the EU's market share to 20 percent by 2030 is seen as unrealistic. To tackle this, countries are demanding faster approval procedures and for the microchip industry to be prioritized in the next EU budget.
The German federal government's cancellation of the Intel chip factory construction in Magdeburg, involving around ten billion euros in state financing, has further highlighted the need for a comprehensive overhaul of the EU's semiconductor strategy. Moreover, a significant portion of microchip value creation currently happens outside the EU.
The review of the microchip law is an opportunity for the EU to address these challenges and create a more competitive environment for the industry. With the microchip industry being crucial for various sectors, the EU's efforts could have significant implications for its technological independence and economic growth.
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