The need to recover a policy of sovereignty for critical infrastructures at the European level and to pursue a policy of common economic and digital independence is one of France’s priorities. Faced with the difficulties in supplying chips and the threats to technology highlighted by the crisis, Brussels will present the “European Chips Act” at the beginning of 2022 to defend this European sovereignty. The text will include “a European preference mechanism in case of crisis”, said European Commissioner Thierry Breton in an interview.

Electronic chips are the tools at the basis of all modern computing. They are found in smartphones, vehicles and washing machines. Their shortage in recent months has put many companies in serious difficulty, with production lines slowing down or even stopping due to the lack of these components.

This is why, during her speech on 15 September, the President of the European Commission, Ursula von der Leyen, insisted on the need to establish a European law on semiconductors so that the Union can gain autonomy. She said:

“There is no digital without chips. As we speak, entire production lines are already running at reduced speed, despite growing demand, due to an unprecedented shortage of semiconductors.”

She had then stressed:

“We are dependent on the most advanced microprocessors made in Asia. So it’s not just about our competitiveness. It’s also about our technological sovereignty as well as the conquest of “new markets for innovative European technologies.”

While demand for semiconductors is exponential, Europe is dependent on Asia and produces only 10% of its global semiconductors. The European Chips Act put in place to solve the chip shortage and support the EU’s ambition to become a digital powerhouse will therefore be presented in early 2022. Thierry Breton, European Commissioner said in an interview:

“As part of the +chips act+ that I will present in early 2022, Europe will support investments, especially disruptive ones, and more broadly the whole sector by relaxing competition rules on state aid. In return for this public support, we will introduce a European preference mechanism in the event of a crisis.”

He added:

“This is, I would remind you, what the Americans did with regard to vaccines produced on their soil. We must learn the lesson. Semi-conductors are also a balance of power issue. This is not protectionism but geopolitical sovereignty.”

The global semiconductor market is estimated at €440 billion. Last March, the EU announced its goal of doubling chip production capacity in Europe by 2030 to reach 20% of the world’s semiconductor production and also aims to attract foreign investment. Thierry Breton was confident, saying:

“Europe has major assets to put forward: the quality and robustness of its electrical production”, its machines that “run 24 hours a day” in the chip industry or its “excellent pool of talent and skills in a sector where recruitment difficulties are currently the biggest obstacle to development”.

Translated from Semi-conducteurs : l’European Chips Act sera présenté début 2022 pour une Europe autonome