The industry association ZVEI calls for significantly more support for chip companies in Europe in order to be able to compete with the USA and China.
(Photo: Bloomberg)
Munich No chips far and wide: More and more companies in this country are suffering from delivery bottlenecks for electronic components. The electronics industry association ZVEI is therefore calling on the parties to quickly form a new government. Because important funding projects for semiconductors would “not tolerate a three, four or five month delay,” said ZVEI President Gunther Kegel in an online press conference this Monday.
Germany and the EU must now quickly decide on subsidies in order to remain competitive in this future industry. “The private sector is ready to invest, but government support is needed,” explained Kegel. The USA and China have advanced with large programs. South Korea and Taiwan have been supporting the industry on a large scale for years. “We run the risk of becoming too dependent,” said Kegel.
In the past few days, it has been shown again that this is not just a mere illusion. According to the US State Department, a total of 93 Chinese fighter jets entered the air security room claimed by Taiwan. The US called this “provocative”.
TSMC, the world’s most important contract manufacturer in the chip industry, produces on the island. An armed conflict between China and Taiwan could in a very short time paralyze a large part of the semiconductor industry and, as a result, electronics and auto plants worldwide.
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The ZVEI therefore wants to expand the industry on a broad front in Europe. On the one hand, Germany and the EU must strengthen those areas in which the continent is at the forefront. This applies above all to the power semiconductors, as they are required in particular for electromobility. The Dax group Infineon is a leader in this rapidly growing field.
On the other hand, it is also important to catch up in areas where Europe has weaknesses. For example with the processors, i.e. the brains of the computers.
Three times as many chip factories in Germany as there are today
The EU has set itself the goal of increasing Europe’s share of global chip production from almost ten to 20 percent. This means a tripling or quadrupling of capacities in Germany because of the simultaneous strong increase in global production, said Federal Minister of Economics Peter Altmaier (CDU) recently.
According to Altmaier, the federal government has planned around three billion euros in funding in the budget so far. However, this sum could also increase to five to ten billion euros if necessary. It remains to be seen whether the new coalition will pursue these plans.
In addition, the ZVEI would like customers to be accommodating. In particular, the auto industry, which has been badly affected by the supply bottlenecks, must undertake to buy at least some of the chips in Europe in the future. This is important for semiconductor manufacturers so that the high investments pay off.
For comparison: Infineon’s latest plant for power semiconductors cost 1.6 billion euros. Even if there was a surplus of chips one day, Kegel emphasized that customers would not be allowed to order in Asia just because it was a few cents per item cheaper.
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