Other Technology | August 1, 2023
The semiconductor sector has engaged in a battle between the United States, China, and Europe in recent years. With the rise of Artificial Intelligence, the demand for chips has increased significantly, and all global giants want to have their own production without depending on others. In line with this, the European Union has just launched its own legislation in this regard.
Recently, the European Chip Law has been approved, allocating a substantial amount of money to semiconductor manufacturing.
The figure approved by the European Union for chip manufacturing, independent of the United States or China, is an impressive 43 billion euros. With this substantial investment, the aim is to primarily compete with the American market, as US restrictions have limited the possibility of manufacturing semiconductors for other countries like China.
The 43 billion euros investment plan was announced last year, but it has now received approval from the European Commission. Several objectives have been set with this investment, notably to make Europe a manufacturer of 20% of all chips used worldwide before 2030. In response to this news, companies like Intel and STMicroelectronics have announced the opening of new headquarters in Europe. This move will create new job opportunities while reducing dependency on supplies from third countries to meet demands.
With the rise of Artificial Intelligence, chip demand is expected to double from now until 2030. Considering that there have already been various issues due to chip shortages, such a sharp increase in demand could lead to significant inconveniences. Avoiding this scenario is one of the reasons that drove the European Union to make such a substantial investment.
This issue goes beyond economic concerns. Even if we could pay Asian or American countries for these chips, it would be of little use if chip deliveries are delayed to the point of causing supply problems. Therefore, manufacturing our own chips may be the best solution.
Now that the European Chip Law has received approval, the next step is for the regulation to be signed by the Presidents of the European Council and the European Parliament. Subsequently, it will be published in the Official Journal of the European Union (OJEU) and will come into effect after 3 days.
