At least since the corona pandemic, it has been clear: Europe’s economy is hanging by China’s thread.
The latest example: With an investment program worth 43 billion euros, the European Union wants to ensure that at least every fifth chip is manufactured in Europe again. At the same time, a program worth 600 billion by the G7 countries is intended to ensure that raw materials for the manufacture of important electronic components can continue to be bought in Africa.
No chips, no digitization
The EU website states: “The European chip law will increase Europe’s competitiveness and resilience in terms of semiconductor technologies and applications, thereby contributing to the digital and ecological transition. “
So far there are only computer graphics from the planned Intel factory in Magdeburg. But semiconductors will soon be manufactured there. So far, two production units are planned – but the site would be sufficient for eight of the high-tech factories
For Christin Eisenschmid, head of Intel in Germany, this is a step that is long overdue: “In 1990 about 40 percent of semiconductors came from Europe, today it is only eight or nine percent. Semiconductors are a key technology here: without semiconductors, there is no digitization.”
The reasons why Europe is in danger of being left behind are clear to Eisenschmid: “Of course, the costs are lower in Asia. But industrial policy was also pursued there in a targeted manner. Chip makers were financially supported.”
Eisenschmid considers the now proclaimed EU target of 20 percent world market share to be ambitious. Even Intel’s new plant in Magdeburg, which is now being built for around 17 billion, can only be a piece of the puzzle.
Eisenschmid to BILD: “We have planned two production units there; according to our calculations, more than ten of these units would be needed for the EU target.”
China builds commodity monopolies
But in the meantime it is no longer enough to build chip factories. China now controls around 90 percent of the world’s supply of rare earths, i.e. raw materials that are needed for the production of chips. John Kerry, the US President’s special representative for climate protection, recently said: “China has conquered the market for lithium and rare earths.”
Eisenschmid is hoping for technical progress here: “The raw materials are indeed a problem. You have to think further. A second source often opens up. But we are also looking at materials research and hope for new, innovative manufacturing processes.”
The only thing that stands between the European high-tech industry and the Chinese state-owned companies is hope.