THE FIGURE OF THE DAY // 20% is the share of world production of semiconductors that the European Union intends to reach by 2030; an objective that the Chips Act, presented on February 8, should formalize.
20% is the share of world production of semiconductors that the European Union intends to reach by 2030. In an interview with several European media, including the business daily The echoesEuropean Commissioner for the Internal Market Thierry Breton unveils the production targets for semi-conductors set by Brussels, an industrial sector that has become strategic for the future. “Without semiconductors, no digital transition, no Green Deal. Cars, 5G, health, defence… Chips are everywhere and will play an increasingly critical role. This is why they arouse major geopolitical interest”he explains, while the world has been facing a shortage of components for several months which is weakening a number of key sectors.
This market should double by 2030 and weigh 1,000 billion dollars. To achieve 20% market share, Europe will have to quadruple its own production. To achieve this, the European Commissioner is counting on research, on skills and on a stable geopolitical environment, as many arguments to put forward with the major groups in the sector so that they invest in the Old Continent, according to him. On February 8, the Commission will unveil its Chips Act, which will encourage State aid for the production of chips. “Our vision, our ambition, is to be the leader in the next generations of chips under 5 nm. Even less than 2 nm.” In the United States, general mobilization has already been decreed. The country plans to invest more than 40 billion dollars. President Joe Biden supported Intel, which announced an investment of at least $20 billion to build two new factories in the suburbs of Columbus, Ohio. The American specialist would have set its sights on Germany and the city of Dresden for its “megafab”, its new large production site in Europe, while Italy seems well on its way to hosting an assembly site. The sector dropped $90 billion in 2021 and expects $100 billion this year. But many investors are beginning to wonder if the current massive means will not prepare the overcapacity of tomorrow…