The EU wants to mobilize 43 billion euros for the expansion of the microchip industry in the EU. The investments should come from the EU budget and the private sector, among others, as the Swedish EU Council Presidency announced today. 3.3 billion are planned from the EU budget. The European Parliament and EU states still have to formally approve the agreement. But that is considered a formality.
The primary purpose of the chip law is to reduce dependency on Asian countries. Semiconductors are used in products such as cars, household appliances, cell phones and many other goods. Chips have been in short supply for a long time and are urgently needed in numerous industries. In Germany, for example, there were bottlenecks in the automotive industry.
The deal should put an end to the problems faced by many of Europe’s high-tech industries, said European Parliament negotiator Dan Nica. Because of the lack of chips, people would have had to wait for months for their car to be delivered.
