EU Nears Multi Billion Euro Chip Deal To Boost Domestic Presence In Semiconductor Chips

EU countries and lawmakers will likely clinch a deal on a multi-billion euro plan on April 18 to boost their domestic semiconductor technology presence.
The countries and lawmakers will meet at the European Parliament's monthly session in Strasbourg on April 18 to negotiate funding details for the act, Reuters reports citing familiar sources.
Talks have focused on a €400 million ($438 million) shortfall, but the EU executive has managed to come up with the bulk of the funds.
Also Read: Taiwan Semiconductor Founder Highlights How US Sanctions Pose A Double Whammy In Form Of Rising Costs, Chip Availability
While the European Commission had initially proposed funding only cutting-edge chip plants, EU governments and lawmakers have expanded the scope to cover the whole value chain, including older chips and research and design facilities.
The Commission declared the Chips Act in 2022 to cut EU dependence on U.S. and Asian semiconductors following global supply chain problems that spread across European businesses, from carmakers to manufacturers.
In 2021, the EU pledged over $150 billion to develop next-generation digital industries this decade to raise self-reliance in advanced technologies like chips and AI.
U.S. trade disputes with China influenced the EU's move, further aggravated by the pandemic-induced supply-chain bottlenecks and automotive microchip crisis.
Europe's leading semiconductor companies include the Netherlands' ASML Holding NV ASML, Germany's Infineon Technologies AG IFNNF IFNNY, and Netherlands' NXP Semiconductors NV NXPI, competing the solid presence of Intel Corp INTC or Taiwan Semiconductor Manufacturing Co Ltd TSM.
Price Action: ASML shares traded lower by 1.39% at $659.41 on the last check Wednesday.
Photo Via Company

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga