The European Union approved major subsidies for semiconductor chip production capabilities to compete with the United States and China in the race to build up domestic technology industries.
The European Council approved the Chips Act on Tuesday, the final step required for the legislation's passage. The bill will provide 43 billion euros ($47.5 billion) in private and public investments to expand the number of factories producing chips in Europe. The new program aims to help double the EU's global share of chip production from 10% today to 20% by 2030. The bill's passage arrived a year after the United States passed its own CHIPS Act, which also aimed to help the U.S. expand its chip production capabilities.
PROGRESSIVE PETRI DISH: MINNESOTA'S NEW LAWS PUT THOUSANDS OF BUSINESSES ON THE BRINK OF RUIN
"With the Chips Act, Europe will be a frontrunner in the world semiconductors race," said Hector Gomez Hernandez, Spain's minister for industry, trade and tourism. "We can already see it in action: new production plants, new investments, new research projects. And in the long run, this will also contribute to the renaissance of our industry and the reduction of our foreign dependencies."
The Chips Act is now considered adopted. It will be signed by the presidents of the European Parliament and the European Council, and it will then be published in the Official Journal of the European Union.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The CHIPS Act enacted in the U.S. last year provides $52 billion in subsidies to encourage the development of domestic chipmakers and suppliers. President Joe Biden has touted the law as key to a revival in domestic manufacturing, although the White House has also had to contend with delays in the launch of a new Arizona-based semiconductor factory over a worker shortage.
The CHIPS Act was passed in large part to ensure that the U.S. is not overly reliant on China and Taiwan for key technologies. It is part of an escalating tech war between the two countries in recent years. China has clamped down on the export of certain metals required to create semiconductors, increasing production costs in the process.