43 Billion Euros for the European Chip Industry

by | 19. Apr 2023 - 12:28 | Politics

Agreement reached between Council of Europe and EU Parliament. Approval by the member states is still pending.

With its own chip law, the European Union wants to arm itself against semiconductor shortages and take a leading role in the field of this technology. A total of 43 billion euros in public and private investment is to be mobilized for this purpose. On Tuesday, the Council of Europe and the European Parliament reached a preliminary agreement, which still has to be formally approved by the European Parliament and the member states before it enters into force. The plan calls for a multi-pronged approach that, in addition to the actual “Chips for Europe Initiative,” will include a monitoring and crisis response system that will identify supply shortages in a timely manner.

The shortage of chips has severely affected the automotive industry, among others, in recent years. Demand for the components that control numerous functions in vehicles will increase in the future. The German Association of the Automotive Industry (VDA) predicts a threefold increase by 2030. The background to this is the expansion of electromobility, but also driver assistance systems or autonomous driving.

Photo: iStock/gorodenkoff

The Magnetics Show USA 2024 advert