A European Union announced this week a bill with investments of €43 billion (US$47,2 billion) for the semiconductor production, fundamental for the technology and automotive industries and also for the photovoltaic sector.
A The goal is to double the region's share of the global market by 2030, to 20%. The agreement will become law once it is approved by the European Parliament and European Union member countries.
Countries around the world are investing billions in two domestic semiconductor industries following supply chain disruption during the Covid-19 pandemic and amid rising geopolitical tensions between the US and China.
During the pandemic, microchips faced a major shortage, paralyzing production around the world. The lack of semiconductor production affects several products, including the production of photovoltaic inverters – equipment responsible for converting direct current electrical energy into alternating current.
As a form of protection, the powers entered into a race to increase their own manufacturing. In August 2022, a United States bill released $52 billion to protect national interests for chip production.
The Chinese are the largest chip producers in the world, and could take up to 80% of the market in a few years.
