Master the 2nm process in 8 years? EU finalizes 45 billion euro chip bill
Latest update time：2022-11-30 23:25
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According to foreign media reports, EU countries agreed on a plan worth 45 billion euros (about 46.6 billion U.S. dollars) to fund chip production on the 23rd. This has brought the 27-member EU one step closer to revitalizing its domestic chip industry and reducing its dependence on U.S. and Asian chip manufacturers.
The Czech Republic, which holds the rotating EU presidency, said envoys from EU countries unanimously supported the revised version of the bill proposed by the European Commission. That includes allowing state subsidies for a wider range of chips — not just the most advanced ones. The subsidies will cover chips that bring innovation in areas such as computing power improvements, energy efficiency, environmental benefits and artificial intelligence.
It is reported that EU ministers will meet on December 1 to finalize the chip plan. However, the plan still needs to be debated by the European Parliament next year before becoming law. Although final plans won't be finalized until next year, a number of companies including STMicroelectronics, Intel, GlobalFoundries, and Infineon have announced plans to build semiconductor manufacturing plants in Europe.
Why is the EU so eager to revitalize its domestic chip industry?
The epidemic in recent years has caused a global "core shortage", damaging many fields such as automobiles and medical equipment. Some European consumers had to wait for nearly a year to buy a car. In February this year, the European Commission announced the long-awaited "European Chip Act". It is understood that Europe's share of chip production has dropped from 24% in 2000 to 8% today, and the "European Chip Act" The goal is to increase to 20% by 2030, while targeting the 2nm advanced process.
European semiconductors have missed out on memory, mobile chips and other trends, but are leaders in the fields of industrial semiconductors and automotive semiconductors, including microcontrollers, sensors, radio frequency technology and automotive chips. The EU hopes to pass some chip bills to expand the automotive manufacturing industry. Bringing Europe back.
Since last year, the EU has been actively seeking leading wafer foundry manufacturers such as TSMC, Intel, Samsung, and GlobalFoundries to set up factories in the EU. But for these manufacturers, building a new wafer fab means that tens of billions of dollars of investment may be required, and naturally the input-output ratio needs to be considered. Especially in August this year, US President Biden signed the "Chip and Science Act", and China and Japan are also actively providing large subsidies to attract chip manufacturers to build factories. The EU feels that it must also follow suit. Only by providing corresponding subsidy policies can we better attract chip manufacturers to build factories in Europe.
EU’s semiconductor ambitions
At a time when geopolitical tensions are rising and the challenges posed by disruptive innovation are growing, European policymakers are looking for ways to strengthen the continent’s strategic autonomy – especially when it comes to technology. A key part of this effort is the EUCHIP
Bill
, which provides billions of dollars in funding to build advanced chip production plants (so-called "fabs") and strengthen semiconductor research in the EU. Just as U.S. policymakers are trying to strengthen the U.S. semiconductor industry with the Chip and Science Act signed into law, lawmakers in Europe are trying to create a more independent technology industry.
The EUCHIP
Act
combines political, industrial, technical and financial support in key technology areas; proposes a clear plan for building industrial and technological capacity; and strengthens strategic control of the semiconductor industry ecosystem in a pragmatic manner in cooperation with like-minded countries .
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