[XGNews]: EU industry Commissioner urges EU to change its past “naive” approach in chip supply

The following is the [XGNews]: EU industry Commissioner urges EU to change its past “naive” approach in chip supply recommended by xgapn.com.

The EU industry commissioner said that Europe naively outsourced most of its semiconductor design and manufacturing operations to other regions, which needs to be corrected.

Thierry Breton, the EU industry Commissioner, said the global shortage of chips was disrupting the supply of cars and electronics, proving it was time to act.

“We want to return to our previous production market share to meet the needs of our industry,” Breton said in an interview. Breton said Europe’s share of semiconductor manufacturing had declined over the years because it was “too naive and too open.”.

The European Commission, the EU’s executive arm, on Wednesday laid out plans to diversify supply chains and conduct regular industry reviews to address the EU’s lack of industrial independence in strategic areas such as semiconductors.

An analysis released by the European Commission at the same time shows that the semiconductor supply chain in the region is more and more vulnerable to the high entry threshold of key industries and the tight trade situation, and relies heavily on advanced chip manufacturing in Asia and chip design tools in the United States.

The EU’s response should focus on re mastering the semiconductor design and production that drives data processing, communications, infrastructure and artificial intelligence, the report said.

The European Commission plans to double chip production by 2030, accounting for at least 20% of global supply. Breton is working with leading European chip manufacturers, research centers and dozens of European governments to support the program. At least 22 countries have signed letters of intent.

Breton said the European Union will have to decide to upgrade the design and production of 20nm chips to 10nm. 10 nanometer chips are smaller and more powerful than most of the chips currently produced in Europe.

At the same time, the EU will make plans to produce a new generation of cutting-edge chips by 2030. Officials aim to produce chips of less than 5 nanometers to 2 nanometers. Industry leaders such as TSMC and South Korea’s Samsung Electronics have yet to achieve this ambitious goal.

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