12,000 million euros to bring the production of chips to Europe

"The objective is that we produce 20% of all microchips in the world in 2030, and that requires that we multiply by four the production of semiconductors in ju

12,000 million euros to bring the production of chips to Europe

"The objective is that we produce 20% of all microchips in the world in 2030, and that requires that we multiply by four the production of semiconductors in just eight years. It is a challenge, a challenge, but it is possible." This is explained by Thierry Breton, entrepreneur before commissioner and responsible for the EU internal market, before the Commission presents its expected 'ACT chips on Monday, the legislation that aspires to mobilize 12,000 million euros "of fresh money, not artifices Accountants, between public and private investment "In order to compete with the US and with the great Asian powers, who have dominated the market for years.

The numbers of Brussels, those 12,000 million (half of the EU budget and of the other countries) plus 30,000 that were already contemplated in all types of continental or national items, aspire to rival the more than 50,000 million dollars Announced by Washington for that same career, which inevitably passes through the construction of what is known as "Megafabs', gigantic factories (with little personal and very expensive robots)." We need 'Megafabs', all possible. But two or three as the beginning would be fine, "says Breton." If we started one of zero in 2022 perhaps we could see an opening in 2026, "he calculates.

The proposal is one of the French ideas of the French, and the President Ursula von Der Leyen has already done his project, but in the community capital there are doubts. On the real capacity of mobilizing that money, about the legality of some of its implications, since the competition team that runs the Danish Margrethe Vestager sees real risks of violating state assistance standards. And also about the philosophy of the project, that the most critical, especially from Germany, consider "subsidizing unproving companies in themselves".

The French rejects the accusations of grants and ensures that "no company gets something as serious for public aid," but it takes breast again and again at a meeting with four European newspapers on how the debate has changed at school of Commissioners. Before there were doubts, but "the proposal has come out and have given me the reason," he says. "Because it is essential."

Your team has scratched budget or program games such as Horizon Europe to obtain those funds and expects to have the backup of the capitals. And the idea is to relax the state aid rules to facilitate the production of chips, allowing giants from all over the planet, such as Intel, to opt for funds if they are committed to opening facilities in Europe. "Aids must be provided and appropriate," says Breton.

But the ACT chips also implies, says Breton, "a paradigm shift". "The age of innocence is over, we are no longer naifs, I come from the business world and I know that a balance of powers is needed. With the pandemic we have learned and changed, as it was seen with vaccines. We are open, but already Not by default and in all circumstances, it is not protectionism, everything is in accordance with the rules of the World Trade Organization, but we demand reciprocity. Now we have instruments and export to those who offer us the same, "says Breton, remembering the case of Vaccines.

The proposal contemplates, precisely, the possibility of doing the same as the United States through the call DPA, its defense production law, that is, activating mechanisms for guarantees supply at critical moments. Preventing, if necessary, the output of chips if European production is in danger. "If Taiwan was not able to export semiconductors, and we have clear ideas of what the reasons could be, most of our factory in Europe would be affected and may have to come up. It is a very significant dependence," alert.

The Commissioner notifies that all these measures are not intended, nor will they serve, to deal with the lack of current supply, and that it expects it to last "one or two semesters" at least.

It is thinking in the medium term, since it estimates that in a decade the world market will go from 500,000 million to a trillion chips, and all partners and rivals are making similar plans. Today, 80% of world production is in Asia, 10% in Europe and the other in Europe. "But in Europe we are in good situation because we better control the R & D than the rest," says the gallus.

Date Of Update: 07 February 2022, 19:24

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