Male “core” full of vitality!Europe and the United States are pushing ahead with stimulus plans for the chip industry worth billions of dollars

2022-05-08 0 By

As the global chip shortage crisis continues, the United States and the European Union are speeding up policies with plans to spend tens of billions of dollars to promote local chip production.The US House of Representatives will take up the so-called America Compete Act of 2022 next week.The bill aims to boost US competitiveness and support the US chip industry, including $52bn in subsidies for semiconductor manufacturing and research.House Majority Leader Steny Hoyer said on Friday the House would vote on the 2,900-page America CompeteAct 2022, saying it would “make further progress in innovation, technology and advanced manufacturing.”Last June, the U.S. Senate passed the American Innovation and Competition Act, which included $52 billion in subsidies to stimulate U.S. semiconductor production;Authorize $190 billion to strengthen U.S. technology and research, among other things.But after passing the Senate, the bill languished in the House of Representatives.The American Competition Act 2022 proposed by the House of Representatives overlaps some elements of the Senate’s American Innovation and Competition Act, but also has some differences.While the U.S. Competition Act 2022 also includes $52 billion to encourage U.S. private sector investment in semiconductor production, it does not include $190 billion to strengthen technology and research.In addition, the bill authorizes $45 billion to support supply chain resilience and the production of critical products, industrial equipment, and manufacturing technologies to prevent shortages of critical products and ensure that more of these products are manufactured in the United States.If the American Compete Act 2022 passes the House, house and Senate leaders will negotiate to resolve their differences.Gina Raimondo, commerce secretary, said on Friday that the bill would “create thousands of jobs across the United States, and we need Congress to pass this bill to revitalize American manufacturing.”The European Union plans to invest tens of billions of euros to boost chip production just as the United States is pushing ahead with subsidies for its chip industry, Europe is planning a similar subsidy to stimulate domestic chip production.The European Union plans to invest tens of billions of euros to boost its domestic chip industry and double its share of global chip production to 20 percent in an effort to reduce its reliance on Asian and US suppliers, the industry’s chief said on Friday.Thierry Breton, eu industry commissioner, told reporters: “I don’t want to tell you today the exact level of investment, but it will be on a par with what the US wants.””We are processing all the different payments, particularly from different countries and regions in Europe, but of course I confirm that when you add it all up we will get what we need and it will be on a comparable scale,” he said.The eu’s ambitious plan comes after the US announced its $52bn CHIPS for America Act last year.Last September, Ursula von der Leyen, president of the European Commission, announced the EU Chips Act, which will cover investment in Chips for the next 20-30 years.The EU’s executive arm plans to put the law into practice on February 8th.The EU plans to set up a project funded by EU countries aimed at producing cutting-edge chips and setting up a design platform for manufacturers, software companies and users to test new applications.”We will make every effort to attract strategic investment.””I want the EU to be a net exporter in semiconductors, as we are in vaccines,” Breton said.In geostrategic industries like power batteries or pharmaceuticals, we are doing the same — not doing everything ourselves, but having the capacity if necessary so that the EU is not held hostage.”