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.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.