2024-08-22 06:42:37
In the EU, tariffs are also being prepared for Asian semiconductors at the end of the summer
The automotive problem is not just electrical. It’s also digital with its software, but mostly for the chips that allow that software to run. China heavily subsidizes its manufacturing companies not only for the cars themselves, but also for the semiconductors. Is a new trade war between China and Europe looming, ask specialists and analysts in the industry.
Following the tariffs on vehicles imported from China (due to the huge subsidies given by Beijing which are against the rules of world trade), there is a new tension between Brussels and Beijing regarding cars. The European Union seriously
is considering raising taxes on Chinese manufacturers
of electronic chips, especially intended for the automotive sector.
The European Commission has actually already asked European car chipmakers to inform if and how Chinese competitors could harm them, reports Automotive News Europe.
Those questions from Brussels were addressed to the German company Infineon, the Netherlands’ NXP and the French-Italian STMicro, which are among three of the five largest suppliers in the automotive semiconductor market. Because according to the latest information, the Chinese government is also subsidizing this sector, which again raises the question of fair competition.
European authorities are not the only ones concerned about the situation.
The US is also worried about growing Chinese competition
This sector is strategic for the EU and the States, which have defined large-scale investment programs. For example, the European law on chips will mobilize a huge resource of 42 billion euros.
“We know that the Chinese government is massively subsidizing this sector, which can create a huge market distortion,” US Commerce Secretary Gina Raimondo said recently. Both regions are considering working together to reduce this potential effect.
America and the European Union said they could take “cooperative measures to address the distortionary effects” in the supply chain of older chips. The two leading global markets
found themselves in a comical situation during the covid crisis,
depending on Asian manufacturers. We will have to wait and see what the outcome of the investigation conducted by Europe is. It should be completed by the end of the summer, and the outcome is likely to be not much different from that of electric cars.
The opinion of some chipmakers is that Europe is too fast. They claim they need Chinese manufacturers of technically “simple” chips because
Europe cannot meet even half of its own demand
And this applies to all – French and Italian manufacturers, as well as German.
Chips for cars will get more complex sooner or later, especially with the need for autonomous driving, and it is not known if Europe is ready for it.