Tag: European CHIP Act

The European Commission has announced the launch of the AI ​​Continent Action Plan, aiming to catch up with the United States and China in their current investment and development in artificial intelligence (AI). Similar to the EU Chips Act, approved by the European Parliament in 2023, which aims to increase the visibility of European-made chips in the global market through over €430 billion in public and private investment, the AI ​​Continent Action Plan also seeks to enable the EU to play a key role in the current AI development trend and secure a certain degree of market influence. Compared to the competition between the US and China in AI technology, the EU's development has been significantly slower, leaving many AI technology leadership positions in the hands of the US or China, which has doubled its investment in AI. The AI ​​Continent Action Plan includes expanding AI-related computing infrastructure, increasing the volume of high-quality data pipelines for AI training, promoting AI algorithm development, accelerating the adoption of AI applications across various sectors within the EU, cultivating more AI talent, and simplifying regulatory procedures for AI applications. In addition, the infrastructure construction will include multiple AI factory network systems, as well as a super factory employing 10 advanced AI chips. This will enable larger-scale AI model operations, thereby maximizing computing power in AI applications and giving the EU greater autonomy in AI development, as well as a stronger voice in market competition. The European Commission estimates that each AI super factory will cost between €30 billion and €50 billion, with the EU and member states expected to cover 35% of the cost, and the remainder to be financed through joint ventures with interested private institutions.

The EU Chips Act, proposed last year, was recently formally approved by the European Parliament. It will involve over €430 billion in public and private investment to increase the visibility of European-made chips in the global market and reduce reliance on chip production in the US and Asia. Currently, about 10% of chips are manufactured within the EU, and the EU hopes to increase this to 20% by 2030, attracting more investment to promote chip research and innovation, and reducing future chip supply shortages. This act will also alleviate the EU's concerns about the geopolitical concentration of chip production in Asia, and the EU hopes to enhance Europe's competitiveness in the chip industry and attract more chip manufacturers to set up factories in Europe. In addition to the EU, the US has also recently signed the Chip and Science Act, allocating up to $520 billion to subsidize the chip industry and providing related tax breaks, with $390 billion specifically earmarked for chip manufacturing to promote the development of the US chip industry.

EU member states recently agreed to the EU Chips Act, proposed in February, which is expected to involve over €43 billion in public and private investment to increase the visibility of European-made chips in the global market and reduce reliance on chip production in the US and Asia. Statistics show that the share of European-made chips in the global market has decreased from 24% in 2000 to 8% today. The EU Chips Act aims to increase this share to 20% by 2030 and enhance the competitiveness of European-made chips. Furthermore, this act will reduce the reliance of European companies on chip production in the US and Asia, while also contributing to economic development in Europe and improving employment and technological advancements. The EU Chips Act, initially proposed in February, was later amended to allow governments to subsidize chips with broader applications, not just advanced process chips. Subsidies will cover chips used to improve computing power, energy efficiency, environmental benefits, and artificial intelligence applications. It also includes restrictions on the European Commission to prevent its interference in supply chain operations. Following the approval of EU member states, the European chip bill still needs to be approved by the European Parliament next year before it can become formal law.

The European Union recently announced the EU Chips Act, which will invest over €43 billion in public and private funds to boost the share of European-made chips in the global market. According to Margrethe Vestager, Executive Vice-President and Digital Commissioner of the European Commission, and Thierry Breton, Commissioner for Internal Market Operations, the goal is to multiply the share of European-made chips in the global market by 2030. Breton also affirmed Taiwan's importance in the global semiconductor industry, noting that nearly half of the semiconductors used in Europe are produced in Taiwan. He further stated that companies like TSMC possess abundant semiconductor technology assets and therefore hope to attract TSMC to establish factories in Europe, thereby increasing the proportion of European chip production. In recent years, factors such as the COVID-19 pandemic have led to chip shortages and insufficient supply of key components in many industries, causing production capacity issues for many products. Since most semiconductor products are manufactured in Taiwan, and major global chip manufacturers such as TSMC and Samsung are located in regions surrounding China, political or war-related factors could potentially cause more industries in Europe to shut down due to chip shortages. Intel CEO Pat Gelsinger recently echoed this sentiment when urging the US government to expand subsidies, mentioning the potential risks of political and war-related impacts on the environment of major global chip foundries like TSMC. He argued that more US companies should be assisted in increasing their local chip production capacity to avoid chip shortages affecting industry operations. On the other hand, the European Chip Act aims to improve the competitiveness of European-made chips and further challenge numerous US chip manufacturers. While the European Chip Act has been proposed, it still needs to be approved by EU member states and the European Parliament. However, given the opposition from the Netherlands and some Nordic countries, there may still be some uncertainties.