EU’S CHIP
PRODUCTION
PLAN AIMS
TO EASE
DEPENDENCY
ON ASIA
The European Union announced a $48 billion
plan to become a major semiconductor producer,
seeking to curb its dependency on Asian markets
for the component that powers everything from
cars to hospital ventilators and game consoles.
At a time when natural gas shortages and
Europe’s reliance on Russia for energy shows
the political risks of economic dependency, the
27-nation bloc is moving to boost its economic
independence in the critical semiconductor
sector with its Chips Act.
“Chips are at the center of the global technological
race. They are, of course, also the bedrock of our
modern economies,” European Commission
President Ursula von der Leyen said. The plan still
needs the backing of the EU parliament and the
member states.
The EU move mirrors U.S. President Joe Biden’s $52
billion push to invest in a national chip-producing