EU plans to establish semiconductor alliance, ASML/ST/NXP/Infineon to join

The European Union is considering setting up a semiconductor alliance including STMicroelectronics, NXP, Infineon and ASML to reduce its reliance on foreign chipmakers amid a global supply chain crunch, EU officials said, Reuters reported.

The EU is planning to launch IPCEI (Important Programme of Common European Interest), which will allow EU governments to inject funds under looser state aid rules and companies to cooperate on the entire plan, but the plan is still in a very preliminary stage.

European internal market chief Thierry Breton said the plan was aimed at supplementing or replacing possible foreign-owned factories by increasing Europe's market share in global chip and semiconductor production from 10% to 20% by 2030.

Thierry Breton will hold a video conference on April 30 with Pat Gelsinger, CEO of leading processor manufacturer Intel, and Maria Marced, general manager of TSMC's European subsidiary, to further discuss the possibility of the two manufacturers setting up manufacturing bases in the European Union. Thierry Breton will also hold talks with Samsung representatives.

Several EU countries including Germany, France and the Netherlands plan to spend up to 145 billion euros in the next 2-3 years to enhance the EU's leading position in the semiconductor industry and establish a complete semiconductor value chain. Sources pointed out that the EU plans to offer more than 10 billion euros in subsidies to attract foreign companies to set up factories.