Chips are the building blocks of many products that have an important place in our lives, especially in electronic devices, cars, homes and various digital products. In other words, states that can develop chips also dominate technology. In this context, the USA had a “chip law” program before. Just like the USA, now the European Union is developing a chip production law in order to be in a competitive position in the developing technology.
The European Union will invest 43 billion Euros in the chip industry!
Europe outsources most of the chips it will use as of the current period. This means that it may encounter disruptions, and it also causes the production not to be exceeded at a certain capacity. Due to such situations, the EU is working on a new chip law. With this law, 43 billion Euros will be invested in the semiconductor sector.
Europe will provide support to investors by considering three different situations within the scope of the new chip law. While the first investment plan is based on supporting R&D studies and developing capacity, ensuring sustainability or acting according to a possible crisis situation are the other plans of the European Union within the scope of the chip law.
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A new semiconductor enterprise opens!
Of the 43 billion Euro budget, 3.3 billion Euros will be allocated for the Chips for Europe Initative, the regulatory body established by the EU on February 8, 2022. The European Council argues that with the new law enacted, a new organization in the semiconductor industry is needed. In this context, the newly established European Chips Infrastructure Consortium will be able to direct semiconductor investments.
According to the table shared on the official website of the Council of Ministers of the European Union, Europe uses chips mostly in the automotive sector as a percentage. The automotive sector is followed by aerospace, defense and security, industry and health. Telecommunications comes in last with 4 percent.
In the light of the plans made, according to the European Council, the global chip industry will reach a value of 1 trillion dollars with great growth in 2030. The European Union, which has a market share of 10 percent today, aims to have more than double the place in the semiconductor industry by 2030, together with the new law and the ways to be followed.
So what do you think about the new chip law of the European Union? Don’t forget to share your ideas with us in the comments section!