Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens for the delivery of clues about the past. CTOnews.com, July 12, local time, July 11, the European Parliament approved the European Chip Act (European Chips Act) by an overwhelming majority of 587 to 10, which means that the European chip subsidy program of up to 6.2 billion euros (CTOnews.com Note: currently about 49.166 billion yuan) is one step closer to the official landing.

On April 18, an agreement was reached between the European Parliament and EU member states to define the content of the European Chip Act, including specific budget elements. The content was not formally approved by the European Parliament until July 11. Next, the bill still needs to be approved by the European Council before it can take effect.

The bill aims to promote microchip production in Europe in order to reduce dependence on other markets. The European Parliament announced that the European Chip Act hopes to increase the EU's share of the global chip market from less than 10% to 20%. The European Parliament believes that the COVID-19 epidemic has exposed the fragility of the global supply chain and that the shortage of semiconductors has led to higher industry costs and consumer prices, slowing Europe's recovery.

Semiconductors are an important part of the future industry, and they are widely used in smart phones, automobiles, heat pumps, household and medical devices and other fields. At present, most of the world's high-end semiconductors come from the United States, South Korea and Taiwan, and Europe lags behind its competitors in this respect. Thierry Bretton, the EU industry commissioner, said Europe's goal was to gain a 20 per cent share of the global semiconductor market by 2027, up from 9 per cent at present. He also said Europe wants to make state-of-the-art semiconductors "because it will determine tomorrow's geopolitical and industrial power".

To achieve this goal, the EU will simplify the approval process for the construction of chip factories, facilitate state assistance, and establish an emergency mechanism and early warning system to prevent supply shortages as they did during the COVID-19 epidemic. In addition, the EU will encourage more manufacturers to produce semiconductors in Europe, including foreign companies such as Intel, Wolfspeed, Infineon and TSMC.

The European Parliament passed the bill by an overwhelming majority, but there was also some criticism. For example, Henryk Hahn, a Green Party MP, believes that the EU budget provides too little money for the semiconductor industry and needs more of its own resources to support European companies. Timo Volken, a member of the Social Democratic Party, said that in addition to increasing the production of semiconductors in Europe, it is also necessary to promote product development and innovation.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.