It was March last year when we talked about the European project of building chips and microchips at home. The proposal, embryonic at that moment, was criticized and not poco by several analysts. However, the project went on and today the European Community presented the bill that would allow European states to become more and more independent from countries like China and Taiwan. These, we recall, are the first producers of the so-called wafer. Let's see the details.
Europe wants chips and microchips made "at home" and the European Chips Act is advancing: 43 billion investments for digital autonomy
To cope with Europe's complete dependence on countries such as China and Taiwan, but also to cope with the chip crisis, here is the proposal called European Chips Act. When we talk about chips and microchips, unfortunately Europe can only count on a 10% market share. This has led to a strong dependence on other countries. But in the future things will change: thanks to 43 billion in investments in this area, the European area should reach 20% by 2030. In the document disclosed by the official website (which you find in the introduction) we talk about the construction of 2 nm chips, the new frontier of technology.
But we also need research and development. For this reason, the plan is designed to address three fundamental critical points:
- the "Chips for Europe" initiative will pool the resources of the Union, Member States and third countries associated with existing Union programs, as well as the private sector, through an enhanced Chip Joint Undertaking, which is the result of the strategic reorientation of the current enterprise common "Fundamental digital technologies". There will be 11 billion € to strengthen existing research, development and innovation, ensure the uptake of advanced semiconductor tools, create pilot lines for prototyping, experimentation and testing of new devices for innovative real-life applications, train staff and develop an in-depth understanding of the ecosystem and the semiconductor value chain
- a framework to ensure the security of supply by attracting investments and strengthened production capacities, indispensable for promoting innovation in the field of chips with advanced, innovative and energy efficient nodes
- a mechanism of coordination between the Member States and the Commission to monitor semiconductor supply, estimate demand and anticipate shortages. The mechanism will monitor the semiconductor value chain by gathering key information from businesses for identify key bottlenecks and weaknesses, it will carry out a joint assessment of the crisis and coordinate the actions to be taken starting from a new package of emergency tools
Margaret Vestager, Executive Vice-President for a Europe Ready for the Digital Age, said:
“Chips are needed for green and digital transitions and for the competitiveness of European industry. Security of supply should not depend on a single country or a single company. We need to do more together - in research, innovation, design and manufacturing facilities - to ensure that Europe is a stronger key player in the global value chain. This will also benefit our international partners. We will work with them to avoid future supply problems. "
These 43 billion in investments will come from both private and public sources. To date 22 member states, signing one joint declaration in December 2020, they committed to work together to strengthen the value chain of electronics and integrated systems in Europe and expand state-of-the-art manufacturing capacity.
It is worth mentioning that after the chip talk, Europe must also adapt with regards to the side connectivity. There are still countries poco reached by 5G and the rest of the world is already starting to talk about 6G.
