The European Union’s chip sector is facing a bleak future due to Chinese export controls and dependence on US technology, according to an EU-funded report. The report highlights the risks of Chinese export controls on critical minerals and magnets, as well as the risk of a war in the Taiwan Strait, which could disrupt supply chains.
Dependence on US Technology
The EU’s dependence on the US for technology, including design software, is also a major concern. The US Congress is debating a proposed law that would give Washington the power to unilaterally impose export controls on allied nations and their companies.
The European Commission is seeking to shore up the bloc’s industry and has proposed a Chips Act 2.0, which includes incentives to improve demand for domestically manufactured chips. The proposal also includes joining Washington’s ‘Pax Silica,’ an initiative of allied countries cooperating to secure supply chains.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
