The European Court of Auditors will be undertaking assessment of whether the EU’s industrial strategy is effective in achieving strategic autonomy in the semiconductor domain, as well as how the EU is moving under the EU Chip Act, which was meant to achieve this autonomy
The European Court of Auditors will be undertaking assessment of whether the EU’s industrial strategy is effective in achieving strategic autonomy in the semiconductor domain, as well as how the EU is moving under the EU Chip Act, which was meant to achieve this autonomy.
The European Chips Act rule went into effect on September 21, 2023, to boost Europe’s competitiveness and resilience in semiconductor technology and applications, as well as to aid in the digital and green transitions.
Chips are crucial assets in critical industrial value chains. New markets for the chip industry are emerging as a result of the digital revolution, including highly autonomous autos, cloud computing, the Internet of Things, connectivity, space, defence, and supercomputers.
The EU Chip Act aims to encourage investments in next-generation technologies and to provide access to design tools and pilot lines for prototyping, testing, and experimenting with cutting-edge chips across Europe. It will include processes for certifying energy-efficient and trustworthy chips in order to ensure quality and security for key applications, as well as creating an enabling environment for investors to develop chip manufacturing facilities in Europe.
Most of the world’s main economies have implemented national policies connected to the semiconductor sector, including significant investment packages or other incentives. These include a €420 billion project in South Korea by 2030, €260 billion in the United States from the CHIPS and Science Act over the next decade, and €185 billion in China from the “Made in China 2025” initiative for 2015-2025.
The Chips for Europe Initiative aims to establish a Design Platform and build capacity to accelerate the development of Quantum chips and related semiconductor technologies. For meeting the financing needs of the industry, regulation facilitates Setting up a Chips Fund and aims to mobilise €43 billion of public and private investments by 2030.
According to published estimates, the EU’s share of worldwide manufacturing capacity across all types of microchips has declined considerably over the previous 20 years. In 2000 EU share manufacturing share was 24%. It shas fallen to 9% in 2020. Today EU is trailing behind various major economies like China, Japan, Taiwan, South Korea and the United States. EU Chip dependency on other Nations might jeopardise the EU’s strategic independence.
Keeping EU’s Sovereign dependency in semiconductor space, EU Chips Act was presented by the European Commission in February 2022. Act highlights the need to address strategic dependencies in the semiconductor sector and aims to double the EU’s global share of cutting-edge and sustainable chip production to at least 20 % by 2030.
European Court of Auditor expect to publish it reports early in 2025 and findings will be instrumental in closing the execution gaps in achieving EU’s Digital Sovereignty.