The US and EU plans to resolve the chip crisis

The US and EU plans to resolve the chip crisis

The European Union aims to build an alliance between manufacturers to secure sovereignty in chip manufacturing. Washington wants to invest 52 billion for 10 new plants

(Photo: Anton NovoderezhkinTASS via Getty Images) Europe and the United States are running for cover in the midst of the global chip crisis. Across the Atlantic, $ 52 billion government funding could generate $ 150 billion in investment in chip manufacturing and research, including state, federal and private grants, leading to the creation of seven to ten new manufacturing sites. This is the estimate of the Secretary of Commerce, Gina Raimondo, regarding the plan that would like to stimulate the competition between the 50 states to win the funds of the two trillion infrastructure plan launched by President Joe Biden.

The United States is been hit by the semiconductor crisis, ending production at the factories of General Motors, Ford, Toyota and Stellantis. The auto sector has lobbied the White House and supporters of the financing point out that in 1990 the country supplied 37% of semiconductors, while now only 12%. The proposal includes $ 39 billion in incentives in manufacturing, research and development, and $ 10.5 billion to create a national semiconductor technology center, the national advanced packaging program and other initiatives. On a private level, in the United States there are already four new plants on the horizon, three in Arizona (one by Tsmc and two by Intel, for 20 billion dollars) and one in Texas (Samsung),

Europe also intends to recover lost ground, from 44% of global production in 1990 to 10% today. The Union would like to double to 20% by 2030 probably launching a program of common interest, allowing member countries to finance the sector by loosening the rules on state aid as a complement or alternative to the installation of a foreign plant on the continent. Internal Market Commissioner Thierry Breton is working on the first hypothesis that could bring together manufacturers such as StMicroelectronics, Nxp, Infineon and Asml.

At the end of a recent meeting, Breton specified that Europe should expand its capacity to build mid-range chips before doubling production quantities and producing the most advanced 2-nanometer chips by 2030. Funding for the plan could come from various programs, including the 20% planned for the digital transition of the Recovery Fund. “We can hope to move quickly, it's a matter of months not years,” says Breton, whose goal is also to attract one of the three major global chipmakers (Tsmc, Samsung or Intel) to build a state-of-the-art plant in Europe. br>
In late April, however, Taiwan's Economy Minister Wang Meu-hua downplayed the chances that local tech companies could produce advanced technology outside the island. A few weeks later, on the other hand, President Tsai Ing-wen had urged the resumption of dialogue for a bilateral investment agreement with the European Union (BIA), suspended since 2015, adding that “Taiwan will continue to engage with the EU and other democratic partners to establish a more resilient supply of essential goods such as semiconductors and medical materials ”. On the table, however, another game is being played, a possible agreement on the basis of investments would be problematic at the political level for the Union, notes Reuters: the member states and the Union have no formal diplomatic ties with Taipei, due to the "objections ”Of China, which considers the island as one of its provinces.

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