EU invests 59 trillion won in semiconductors aiming for 20% global market share
Ursula von der Leyen, President of the European Commission
Photo by Reuters Yonhap News
[Asia Economy Reporter Park Byung-hee] The European Union (EU) Commission unveiled an investment plan worth 43 billion euros (approximately 58.7 trillion KRW) for the semiconductor industry on the 8th (local time), aiming for a 20% global market share by 2030, Bloomberg reported on the same day. The scale of the EU's investment is similar to the $52 billion (approximately 62.17 trillion KRW) semiconductor support included in the U.S. Competition Act.
On the same day, the EU Commission proposed the 'EU Chips Act' as one of the measures to respond to the global semiconductor supply shortage and reduce dependence on the U.S. and Asia. Through this law, the EU Commission explained that the goal is to achieve 20% of global semiconductor production within Europe by 2030. This means doubling the current market share of about 10%.
Ursula von der Leyen, President of the EU Commission, explained, "This goal means we will make four times the effort compared to what we have done before, considering the surge in international demand." President von der Leyen stated, "Semiconductor chips are at the center of international technological competition," and noted that due to the recent semiconductor shortage, demand increased but the necessary supply could not be procured.
President von der Leyen explained that this law will connect world-class research, design, and testing capabilities within the EU and coordinate investments between the EU and individual member states.
This law will be applied after approval by EU member states and the European Parliament.
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China is pushing for a 'semiconductor rise' to increase its domestic semiconductor self-sufficiency rate to 70% by 2025. To this end, China established a $29 billion fund in 2019 to invest in its semiconductor industry. In the draft of the '14th Five-Year Plan and Long-Term Goals through 2035' unveiled at the National People's Congress (NPC) last March, semiconductors were presented as one of the seven key scientific and technological research areas.
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