EU Turns Rivals into Allies
By Anne-Françoise Pelé, EETimes Europe (September 25, 2023)
For the sake of domestic security and global competitiveness, the EU turns a blind eye to business rivalries.
Germany is a favorite. After Intel got the go-ahead this summer to expand its planned footprint in Magdeburg, TSMC received the green light for a joint-venture fab in Dresden. The pledges come at a make-or-break moment for long-term competitiveness for the EU.
A sense of responsibility and a sentiment of “never again” emerged as Europe faced severe semiconductor supply chain disruptions and challenges in the post-Covid-19 economy. Over the years, Europe had ceded vast amounts of its market share in semiconductor manufacturing, and its reliance on imports had become particularly troublesome in industries such as automotive and consumer electronics. The EU Chips Act, proposed in February 2022 and passed into law in July 2023, aims to enhance resilience, strategic autonomy and security of supply in semiconductors.
In the semiconductor industry, working in unison and rallying collective strengths have often paid off. In this respect, the creation of a European chip champion has been a recurring theme.
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