EU Official: Semiconductor Independence Is Impossible

The European Union consumes hundreds of millions of chips every year, but only a handful of them are made within the bloc. Although countries like Germany are encouraging chipmakers to build fabs there, it is unlikely that the EU will ever become completely independent from other countries as far as semiconductor supply is concerned. That is according to Margrethe Vestager, EU’s Commissioner for Competition.

Leading contract makers of semiconductors — such as Intel, Samsung Foundry, and Taiwan Semiconductor Manufacturing Co. — spend around $30 billion per year on capital expenditures and billions on developing new process technologies. Analysts believe that a country, or a group of countries, that wants to build a competitive semiconductor industry locally would need to spend over $150 billion over a period of five years on direct help, tax breaks, and incentives. However, the chances of success are extremely low. 

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