EU to intensify local computer chip production

The European Commission has outlined plans to more than double its production of chips by 2030, signalling a shift away from production outside of the bloc amid rising trade tensions.

The move was announced in the European Commission’s communication: 2030 Digital Compass: the European way for the digital decade, which outlines how European chip manufacture and global economic weight in key technology areas including processors, web platforms and cloud infrastructure continues to lag behind other countries such as the US and China.

The communication stated: “The position of European players is far below the EU’s global economic weight in key technology areas like processors, web platforms and cloud infrastructure, for example 90% of the EU’s data are managed by US companies, less than 4% of the top online platforms are European, European made microchips represent less than 10 % of the European market

“If connectivity is a precondition for digital transformation, microprocessors are at the start of most of the key, strategic value chains such as connected cars, phones, Internet of Things, high performance computers, edge computers and Artificial Intelligence. While Europe designs and manufactures high-end chips, there are important gaps, notably in state-of-the-art fabrication technologies and in chip design, exposing Europe to a number of vulnerabilities. It is our proposed level of ambition that by 2030 The production of cutting-edge and sustainable semiconductors in Europe including processors is at least 20% of world production in value (meaning manufacturing capacities below 5nm nodes aiming at 2nm and 10 times more energy efficient than today).”

The commission outlined a massive “scale-up of investments” through EU funds and national spending and leveraging private investments to allow the EU to develop “critical technologies” to foster productivity growth and technological development.

Photo credit: DesignRage, Shutterstock

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