The EU Intends To Increase Investment To Solve The Core Shortage Crisis

Since the beginning of this year, the impact of chip shortages on the European automotive industry has been increasing, and the "core shortage" crisis is spreading to consumer electronics and other fields. Industry insiders expect that the chip shortage problem may even continue into next year. To this end, the European Union plans to establish a "chip alliance" to invest huge sums of money to achieve chip self-sufficiency.

According to German media reports, due to insufficient chip supply, German automaker Daimler has suspended production of the Mercedes-Benz E-Class at the Sindelfingen plant since last week. Prior to this, German Volkswagen and Audi had ceased production to varying degrees due to chip shortages.

The "core shortage" crisis not only affected the global automotive industry, but also quickly spread to other fields, affecting consumer electronics companies such as Apple, Samsung, and HP.

A survey of thousands of companies by the Munich Iver Institute for Economic Research in Germany showed that 45% of industrial companies complained about the shortage of intermediate products in April, a higher percentage than before.

In addition, the Japanese semiconductor giant Renesas Electronics' main factory fire accident in March, and the extreme weather in Texas, the US semiconductor powerhouse, in February made the original tight chip supply worse.

European media have recently disclosed that the European Union is considering establishing a "chip alliance" including STMicroelectronics, NXP Semiconductors, ASM and Infineon, in order to reduce import dependence in the context of a tight global semiconductor supply chain. .

According to Thierry Breton, European Commissioner for the internal market, the goal of the project is to increase the share of European semiconductor production in global production from the current 10% to 20% by 2030, basically realizing European chip demand. Local production meets. The EU intends to spend huge sums of money to attract Intel, Samsung or TSMC to establish high-end chip factories in Europe.

According to reports, Intel hopes that the European Union will provide 8 billion euros in government subsidies to support its construction of chip factories in Europe. Intel will make a decision before the end of this year. If all goes well, the construction period of the factory is expected to be two years. Intel hopes to become a major local chip supplier by building a factory in Europe.