company news about Eu finalizes 43 billion euro provisional deal on Chip Act

Thierry Breton, EU internal market commissioner, said the EU had finalised a provisional agreement on the Chip Act.

Breton told a news conference that the European Commission, EU member states and the European Parliament had been negotiating the final details of the Chip Bill since early Thursday morning and had now reached an agreement.

The plan will cost 43 billion euros ($47 billion), 3.3 billion of which will come from the EU budget, and aims to increase the EU's share of global chip production from 10 percent today to 20 percent by 2030, catching up with the United States and Asia, according to a press release on the Council's website.

' The Commission has proposed three main lines of action or pillars,' the press release read. 'First, support for large-scale technological capacity building; Setting a framework to ensure security of supply and investment flexibility; Establishing crisis monitoring and emergency response mechanisms.

In the 1990s, the European Union held more than 40 percent of the global chip market, but that share has fallen to about 10 percent.

The global chip shortage from 2021 has severely affected all industries in the EU, with the automotive industry particularly affected, highlighting the EU's over-reliance on overseas chip suppliers.

In addition, Europe is facing increasing pressure to compete in technology with the Chip and Science Act, which was signed into law by the US administration last year.

When she first launched the initiative, European Commission President Ursula von der Leyen stressed that chips are now found not only in personal computers and smartphones, but also in cars, home heating systems, hospitals and ventilators. "Without chips, there is no digital age," she said.

Us chip giant Intel, which has announced plans to invest €80bn in its automotive chipmaking business in Europe, welcomed today's decision.

Hendrik Bourgeois, Intel's vice president of European government affairs, said the EU's decision to focus investment on manufacturing, technology and research and development, where it is needed most, ensures it is serious about future prosperity.