Invest 50 billion euros! The European Union wants to strengthen its semiconductor independence

Competition in the global semiconductor industry is fierce, and many countries have shown their determination to try to strengthen their industrial competitiveness.

The German government stated on February 3 that it intends to implement support plans with European countries to improve local hardware production technology capabilities, with a total investment of 50 billion euros (about 387.86 billion yuan).

Reuters reported that German Minister of Economy Peter Altmaier met French Minister of Economy Bruno Le Maire on February 3 by video.

Altmaier predicts that the “Important Project of Common European Interest” (IPCEI) actively promoted by the European Union will invest 50 billion euros in the European chip industry, of which 60% to 80% will come from chip manufacturers and EU members. The country‚Äôs official subsidies account for 20% to 40%.

The report pointed out that Germany and France have reached an agreement with 17 other EU countries to cooperate in processor and semiconductor technology to reduce dependence on American and Asian manufacturers.

The current global semiconductor market has reached 440 billion euros, while the European market accounts for about 10% and is highly dependent on foreign-made chips. During the COVID-19 pandemic, global chips are facing a serious imbalance between supply and demand, making chips self-sufficiency and production capacity the focus of attention of all countries.

A spokesperson for chip manufacturer Infineon welcomed Altmaier’s plan and called on the European Commission and member states to take immediate action to enhance the competitiveness of the European semiconductor industry and strengthen the EU’s geopolitical influence.

According to the latest data from the Semiconductor Industry Association (SIA), global semiconductor sales in 2020 will grow by 6.5% to reach 439 billion U.S. dollars. The main reason is that the epidemic promotes the trend of remote office and teaching, which drives the demand for electronic products.

China grew by 5% to US$151.7 billion and remained the largest sales market. The Americas grew by 20% annually to US$94.2 billion, Japan grew by 1% to US$36.4 billion, and the Asia Pacific and other regions grew by 5% to US$119.4 billion. The European market It was down 6% to US$37.4 billion.

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