2023-07-11 16:14:28
The European Union (EU) is moving forward to strengthen its strategic autonomy. The European Parliament has approved this Tuesday the new law that will allocate 3,300 million euros to promote the industry of semiconductorsan essential technological component for sectors such as the automobile or consumer electronics.
The global shortage of chips accentuated after the outbreak of the covid health crisis highlighted the weakness of the EU in this strategic market. Europe’s share in the global production of this product is below 10%, something that the new law wants to increase to at least 20% by 2030.
To achieve this ambitious objective, the EU wants to create a favorable environment for investments and give more support to companies that are committed to the manufacture of semiconductors. Likewise, it intends to speed up the procedures to obtain permits and allocate those 3,300 million to research and innovation of these products.
With an overwhelming majority of 587 votes in favor, the plenary session has given the green light to legislation that legislators and the European Council already agreed on last April. Only the approval of the Council is pending before it becomes law.
Powers for the Commission
The European Commission will be responsible for assessing the risks of this market and will have the ability to apply emergency measures in the event of a new chip shortage crisis in the EU. These measures range from making common purchases for the Member States to giving priority to the supply of those products most affected.
With this law, the EU seeks to take a step forward to strengthen its position in the world, reducing its dependence on other actors to boost its autonomy. Policymakers understand that improving manufacturing capacity and supply of semiconductors within the community club will make it more resilient to another potential shortage situation. The one produced in 2020 ended up entailing an increase in costs for the industry and consumers, but it also slowed down the Economic recovery from the old continent.
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