The European Union is ready to finance the European expansion of chip manufacturing

The European Union has indicated its readiness to fund initiatives that will strengthen chip manufacturing capabilities in Europe. The global chip shortage caused by the Covid-19 pandemic, combined with increased demand for technology products, has led many countries and regions to reassess their supply chains and production capacities.

The United States, China and South Korea have explored options, while the European Union previously suggested that it would support an alliance between major European manufacturers such as ASML, Infineon, STM and NXP. In a meeting at ASML, Internal Markets Commissioner Thierry Breton said that Europe would need to expand its capacity to produce mid-tier chips before it could meet the long-term goals of increasing its global market share and producing more advanced silicon. .

The European Union wants to tackle the shortage of components

According to the Reuters portal, Breton suggested that the financing could come from investment programs, including a Covid-19 recovery fund of 800 million euros. He reiterated the wish that a major global player such as Samsung, Intel or Taiwan Semiconductor Manufacturing Company (TSMC) establish a facility in Europe.

Industry figures are divided on how long the chip shortage will persist. Some say that it will end at the beginning of next year and others extend it until 2023. When in doubt, they want to encourage the creation of factories of all sizes to try to shorten the predictions.

The current difficulties affect a wide range of electronic products, including mobile phones and wireless routers, as well as industries that increasingly rely on connectivity, such as automotive. Worse, the impact is likely to be felt less in high-end segments, such as high-end smartphones, where major vendors can use their financial and market clout to secure a steady supply of chips.

Source: Techradar