Europe’s strategy to boost its computer chip industry and compete with Asia gets final approval

LONDON (AP) — European Union member states gave final approval Tuesday to the bloc’s master plan to expand semiconductor production, clearing the path for its massive effort to slash reliance on Asia for computer chips vital for everything from washing machines to cars.

The European Council’s ministers signed off on the EU’s Chips Act, which will channel 43 billion euros ($47 billion) in public and private funds and allow state aid for the continent’s semiconductor industry. EU leaders want to use the cash to kick-start massive investments for new chipmaking facilities, doubling the 27-nation bloc’s share of global semiconductor production to 20% by 2030.

Asia accounts for most of the global production of semiconductors — a crucial role that was exposed during the COVID-19 pandemic, when supply chain disruptions resulted in extended shortages of autos, smartphones and medical devices.

Other news Ties with far-right hinder Spain’s Popular Party forming a government despite election win Chances to form a government have dwindled for Spain’s conservative Popular Party after its election win after two small regional parties refused to lend their support due to the potential presence of the far-right Vox party in the cabinet. Heat wave returns as Greece grapples with more wildfire evacuations A third successive heat wave in Greece pushed temperatures back above 40 degrees Celsius (104 degrees Fahrenheit) across parts of the country following more nighttime evacuations from fires that have raged out of control for days. Jill Biden to mark US reentry into UNESCO with a flag-raising ceremony in Paris U.S. first lady Jill Biden is in Paris to attend a flag-raising ceremony at UNESCO. Her visit on Tuesday marked Washington’s official reentry into the U.N. agency after a five-year hiatus. Jury to deliver verdict over Brussels extremist attacks that killed 32 A jury is expected to render its verdict Tuesday over Belgium’s deadliest peacetime attack. The suicide bombings at the Brussels airport and a busy subway station in 2016 killed 32 people in a wave of attacks in Europe claimed by the Islamic State group.

Western governments are trying to wean themselves off Asia. The U.S. launched its own $52 billion Chips Act, and Britain has a smaller $1.2 billion chip strategy. Companies like Intel have unveiled ambitious investment plans for Europe.

Chips are integrated circuits embedded in a semiconductor, a material — notably silicon — that can manage the flow of electric current. The terms “chip” and “semiconductor” are often used interchangeably.

The EU Chips Act will take effect after it’s published in the Official Journal of the European Union.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.