European Union has €43 billion plan to manufacture semiconductors

Agreement will become law as soon as it is approved by the European Parliament
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Chips are used to manufacture various products, including photovoltaic inverters. Photo: Pexels

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 US$ 52 billion to protect national interests for chip production.

The Chinese are the largest chip producers in the world, being able to take up to 80% from the market in a few years.

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Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energia and Agência Estado. He has covered the electricity sector since 2011. He has experience in covering events, such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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