European Union Council approves €43 billion Chips Act
Over the last few years, governments around the world have been scrambling to boost domestic semiconductor manufacturing. The reasons are many. Protecting supply chains, reducing reliance on Taiwan's TSMC, economic protectionism and national security are all valid reasons to boost domestic chip production. The EU is the latest body to take pass legislation. It's passed its own Chips Act, which allocates €43 billion ($48 billion) to support EU based semiconductor manufacturing.
The bill seeks to foster the development of a European industrial base by creating favorable conditions for investment, education, and research and development to support a healthy chip manufacturing industry over the long-term.
«With the Chips Act, Europe will be a frontrunner in the world semiconductors race. We can already see it in action: new production plants, new investments, new research projects. And in the long run, this will also contribute to the renaissance of our industry and the reduction of our foreign dependencies,» Héctor Gómez Hernández, Spanish minister for industry, trade, and tourism, said of the development.
Intel has already taken steps to increase European chip manufacturing, signing a 30-billion euro deal with the German government to build facilities in Magdeburg, Saxony-Anhalt. It's also set to expand its presence in Kiryat Gat, Israel.
TSMC is also expanding in the USA, though its not going to plan due to a lack of skilled workers. That last point is a major roadblock to any chip manufacturing expansion plan. Bleeding edge facilites don't run themselves, and educating thousands of workers takes years and a lot of investment.
The EU bill follows in the footsteps of similar actions taken by many governments to shore up
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