STRASBOURG, Sept 15 Reuters : The European Commission announced plans for a new chipmaking 'ecosystem' on Wednesday to keep the EU competitive and independent after a global semi-conductor shortage showed the dangers of relying on Asian and U.S. suppliers.
Media is the digital issue of make-or-break, Commission President Ursula von der Leyen said in a policy speech at the European Parliament in Strasbourg on Wednesday.
The objective of the collaboration is to create a state-of-the-art European chip ecosystem, including production. That ensures our security of supply and will develop ground breaking markets for new tech. A shortage of semiconductors has posed one of the biggest risks to EU rebound from the effects of COVID - 19 pandemic The Commission last year unveiled plans to invest a fifth of its 750-billion-euro COVID 19 recovery fund in digital projects.
Von der Leyen lamented the EU's reliance on China made chips and its diminished share in the supply chain, from design to manufacturing capacity.
However, obstacles to building up Europe's chip capability include having access to rare earth minerals outside of the bloc and reluctance by companies to make hefty investments unless they can run the plants at full capacity to boost their return.