According to Margrethe Vestager, European Commissioner for Competition, complete independence in semiconductor manufacturing is not achievable. This is due to the fact that the development of semiconductor production requires colossal investments.
As you know, many industries are now suffering from a shortage of semiconductor products. This prompted the EU authorities to look for incentives for the development of local production. However, Vestager warns against unrealistic expectations. The EU’s strategic goal may be to increase its share in the global production of microcircuits from the current 10% to 20% by 2030. For comparison: in the 90s, the share of European manufacturers was 40%.
The challenge now is to meet the increased demand, and this does not always mean mastering the most advanced technological processes. There is a huge demand for microcircuits produced according to relatively old technical processes. They are essential for cars, consumer electronics, and IoT devices.
Political motives play an important role. Fears that tensions between the US and China, or Germany and China could disrupt supply chains even more, are forcing the EU to act more proactively.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
