Ursula von der Leyen, President of the European Commission, made the comments at the revolution of a five-billion-euro ($5.5 billion) chip factory in Dresden, between a series of new semiconductor projects that occurred in Germany.
The EU is gruelling to minimise reliance on semiconductors produced in Asia, and struck an agreement focusing on doubling the bloc’s global market share to 20% in 2030 and mobilising substantial investment in the previous month.
According to Von der Leyen, Europe is home to several leading chip-making enterprises, but has recently failed to prioritise semiconductor manufacture.
Furthermore, the current global focus of chip production is in South Korea and Taiwan, both of which have high tensions, she added.
“Any trade disturbance would immediately harm the strong industrial base of Europe and our strong internal market,” Leyen said.
“We have seen how geopolitical tensions have increased over the past few years,” she added.
She also said that it was essential for Europe to reinforce supply chains, adding: “For semiconductors, which are so important, we need more mass production here in Europe.”
However, Taiwan’s status as a chip-making space is causing geopolitical agitations as China increasingly threatens the island, an independent democracy that the Chinese Communist Party proclaims and has affirmed it will seize one day.
On the other hand, South Korea faces annual high tensions with North Korea, which has organised a record-breaking string of authorised-defying rocket launches later this year.
The EU chief also said the alliance was working to make sure Europe has access to significant raw materials that are used to make consumer electronics, through a recently disclosed draught regulation.
Olaf Scholz, the German Chancellor, who also spoke at the ground-breaking, said “chips — that power everything from smartphones to fighter jets — were often referred to as the petroleum of the 21st century.”
“The one raw material, on which almost everything else depends,” he added.
Furthermore, the coronavirus pandemic has already given Europe a taste of the complications that arise when semiconductor supply chains become overburdened, with shortages affecting a variety of industries.
Infineon’s, a semiconductor manufacturing firm, new site in Dresden is scheduled to open in the fall of 2026, and generate 1,000 jobs.
Recently, US tech giant Intel, German engineering group Bosch, and US chipmaker Wolfspeed all announced major semiconductor investments in Germany, Europe’s top economy.
- Published By Team Genuine Reporter