With its “Chips act”, the European Union wants to quadruple its production of electronic chips


“Our vision, our ambition, is to be a leader in the next generations of chips,” explains European Commissioner Thierry Breton in an interview.

As the effects of the shortage of semiconductors continue to be felt across the world, the European Union is reflecting on the aftermath and lifting the veil on its action plan. In an interview given to several European newspapers, including The echoes , the Commissioner responsible for the Internal Market regrets the heavy dependence the Union suffers from on the supply of electronic chips manufactured in Asia. “It is absolutely essential to produce a lot more of it in Europe“, emphasizes Thierry Breton.

With this in mind, the European Commission will present, at the beginning of February, aChips act“: while Europe today only accounts for 10% of the world’s chip production, Brussels wants to double this share by 2030. “It’s about […] for Europe to quadruple our own production», summarizes Thierry Breton. The challenge is first of all strategic, in order to strengthen “independence” from Europe. The pandemic served as a warning: “we cannot afford to be dependent on third countries in strategic areas. We saw it with the episode of masks and then vaccines“, underlines the European commissioner. It is also economical:the market is expected to double by then to $1 trillion», interesting opportunities for the future.

For Thierry Breton, Europe has essential qualities enabling it to achieve the set objective:skills“, first of all, “very good industrial equipment“, then, as well as a “stable geopolitical environment, based on respect for the rule of law» and «clear rules on duration“. In addition, “financial helpwill be mobilized to attract major manufacturers, through “european funds” and “aid from Member Statesadded the Commission representative.

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In exchange for this support, companieswill have to invest in the technologies of the future, with a 5 to 10 year road plan», and «very clear conditionswill be defined to ensure Europe’s supply of semiconductors in the event of a crisis.

A shortage with serious consequences

The intervention of Thierry Breton and the presentation of the “Chips actare therefore intended to respond, in the longer term, to a notable fragility of the European Union. The ambition of the Commission is thus to project itself:our vision, our ambition, is to be the leader in the next generations of chips under five nanometers. Even less than two nanometers“, also details the European commissioner.

Many sectors, including the automotive industry, are suffering from a slowdown in activity due to the lack of these essential chips. In response, the major manufacturers are investing massively, wishing to increase their production capacities.

In mid-January, Bruno Le Maire explained that the French presidency of the Council of the EU should be an opportunity to come back to this strategic file. “Our objective is twofold. It is a question both of continuing to advance in research to master semiconductors with the finest possible etching and it is at the same time to develop the capacities that our industrialists need.“, declared the Minister of Economy, Finance and Recovery. “The battle of the semiconductors, it is launched. We want Europe to win“Assured the boss of Bercy.



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