EU ‘off the tempo’ in international microchip race: auditors

The fee mentioned it took word of the report however defended its efforts [File]
| Picture Credit score: REUTERS

The EU is lagging behind within the international race to supply microchips, and appears set to fall properly in need of its goal to assert a fifth of the world’s market, the bloc’s auditors mentioned Monday.

“The EU urgently wants a actuality verify in its technique for the microchips sector,” mentioned Annemie Turtelboom, a member of the European Courtroom of Auditors.

“It is a fast-moving area, with intense geopolitical competitors, and we’re presently far off the tempo wanted to fulfill our ambitions.”

The disappointing outlook for the European Union comes regardless of Brussels passing a flagship Chips Act in 2023 aimed toward bolstering manufacturing within the bloc.

Turtelboom mentioned that at present progress charges, the EU was “nowhere shut” to reaching its goal of getting a 20 % share of the worldwide microchip market by 2030.

In its personal estimates, the European Fee forecasts the EU’s share will solely attain 11.7 % in 2030, up from round 10 % in 2022.

“Europe must compete — and the European Fee ought to reassess its long-term technique to match the truth on the bottom,” Turtelboom mentioned.

The EU started prioritising native chip manufacturing after the coronavirus pandemic triggered provide chain shocks that led to vital shortages.

Main powers like the US and China have additionally ramped up efforts to bolster their very own industries.

The auditors’ report mentioned investments by the EU’s opponents “dwarved” that foreseen by the Chips Act.

The bloc’s efforts have been additionally hampered by different components together with a reliance on imports of uncooked supplies, excessive power prices, export controls and a scarcity of expert labour, it mentioned.

The fee mentioned it took word of the report however defended its efforts.

“The Chips Act has laid a robust basis in consolidating Europe’s place within the international semiconductor market after 20 years of decline, and put Europe again on the trail of progress,” mentioned EU digital spokesman Thomas Regnier.