FX.co ★ EU plans 'Chips Act' to boost domestic semiconductor manufacturing

According to economists, Europe needs to pass a microchip act for further development. This would allow it to catch up with the world's developers and manufacturers of these products. The European Commission is planning to propose the draft.

The issue was raised by the agency's president Ursula von der Leyen on September 15. The initiative is expected to be key to the region's sovereignty. It should be noted that the European economic recovery is being hampered by a shortage of semiconductors. Recently, it has become a true challenge for consumer electronics companies and car manufacturers. Experts emphasize that the current problems are reflected in falling wages in these sectors. At the same time, a significant drop in sales is recorded.

The European Chips Act covers three dimensions, including a European Semiconductor Research Strategy, a collective plan to enhance the European production capacity, and development of the international cooperation and partnership.

Earlier, Von der Leyen said the EU should break its dependency on microprocessors manufactured in Asia. The head of the European Commission stressed that the aim was to jointly create a state-of-the-art European chip ecosystem, including production. According to European leaders, although the initiative involves considerable investments and numerous difficulties, the goal is worth it.