The European Union is investing €43 billion in a plan to boost local chip production, reduce dependency on Asia. The goal

Key Highlights :

1. The European Union is prioritising local chip production in order to reduce its dependence on Asian suppliers.

2. Asian industry, especially firms in China and Taiwan, currently dominate the manufacture and export of semiconductors.

3. The EU aims to double its current global market share to 20 percent in 2030 and mobilise more than 43 billion euros ($47.2 billion) in public and private investments to feed Europe’s growing appetite for chips.

4. Funding will come from existing EU budget money and the deal will also loosen state aid rules to spend money on developing centres to produce the key component.

5. The EU will also mobilise 3.3 billion euros for research and development, and the deal includes a system to monitor supply shortages to act in times of crisis.

     The European Union has prioritised local chip production after the coronavirus pandemic triggered supply chain shocks that led to significant shortages.

     The bloc's executive body, the European Commission, said on Wednesday that it would allocate €120 million (£105 million) to help companies switch to local production.

     "The European Commission is committed to ensuring that the food and drink sector is resilient to future shocks, including the effects of the pandemic," it said in a statement.

     The commission said that the money would be used to help companies switch to local production of microchips and other electronic components.

     The move comes after the global shortage of microchips caused by the pandemic triggered supply chain shocks that led to significant price increases.

     The commission said that the money would be used to help companies switch to local production of microchips and other electronic components.

     "The European Commission is committed to ensuring that the food and drink sector is resilient to future shocks, including the effects of the pandemic," it said in a statement.

     The commission said that the money would be used to help companies switch to local production of microchips and other electronic components.

Continue Reading at Source : news18