BRUSSELS, Oct 13 (Businesshala) – The European Union should not detract from the global semiconductor supply chain in its efforts to build a European chipmaking ecosystem and become self-sufficient, the Netherlands warned this week.
The global supply chain, a business model that has proved popular for the past 30 years, has been disrupted by the COVID-19 pandemic, prompting governments around the world to consider bringing manufacturing operations closer to home.
The European Commission, the EU executive, in September proposed a European Chips Act covering research and production capacity, fueled by chip shortages that have disrupted the auto industry, medical device makers and telecommunications providers.
The EU is dependent on Asian-made chips and has a small share in the supply chain from design to manufacturing capability.
It would be a mistake to isolate from the global supply chain, the Netherlands said in a paper published on the government website, pointing to the success of Dutch companies ASML (ASML.AS), the world’s leading manufacturer of advanced chipmaking tools and chipmaker NXP. NXPI.O) and Bessie (BESI.AS).
The European Chips Act “requires acknowledgment that decoupling of the global semiconductor value chain is an illusion,” the paper said.
“European interests are best served by an open ecosystem that remains focused on attracting investment, accelerating innovation and adding market value. Diversification and interdependence promote resilience and prevent unilateral dependence. “
The Dutch also proposed manufacturing devices to prevent unwanted major strategic takeovers from chip makers.
The Commission’s 2022 work program predicts the CHIPS Act to be adopted in the third quarter of next year.