EU Urged to Expand Semiconductor Supply Chain Scope: Leaders Call for Inclusion of Design, Materials, and Equipment
The semiconductor industry has long been a cornerstone of technological advancement, powering everything from smartphones to electric vehicles. However, recent supply chain disruptions and shortages have highlighted the fragility of global semiconductor production. In response to these challenges, semiconductor leaders are calling on the European Union to expand its semiconductor supply chain scope.
At the heart of this push is the call for the EU to broaden the Chips Act to encompass not just manufacturing, but also design, materials, and equipment. The Chips Act, which aims to bolster semiconductor manufacturing within the EU, currently focuses primarily on production capacity. While increasing manufacturing capacity is crucial, industry leaders argue that a holistic approach to the semiconductor supply chain is needed to ensure long-term resilience and competitiveness.
By including design, materials, and equipment in the scope of the Chips Act, the EU can address key vulnerabilities in the semiconductor supply chain. Design is a critical aspect of semiconductor production, influencing factors such as performance, power efficiency, and time to market. By fostering design capabilities within the EU, the region can reduce its dependence on external design firms and have more control over the entire semiconductor value chain.
Materials are another crucial component of semiconductor manufacturing, with certain materials being subject to supply chain constraints and geopolitical risks. By investing in domestic sources of key materials or diversifying suppliers, the EU can mitigate the impact of material shortages and disruptions. Additionally, promoting research and development in advanced materials can give EU semiconductor manufacturers a competitive edge.
Equipment, such as lithography machines and testing tools, is essential for semiconductor production. Ensuring access to state-of-the-art equipment within the EU can enhance manufacturing capabilities and support innovation in the semiconductor industry. By incentivizing the development and deployment of cutting-edge semiconductor equipment, the EU can strengthen its position in the global semiconductor market.
The push to expand the Chips Act to cover design, materials, and equipment aligns with broader efforts to bolster the EU’s technological sovereignty. As the digital economy becomes increasingly important, securing a reliable semiconductor supply chain is essential for industries ranging from automotive to healthcare. By investing in all aspects of the semiconductor value chain, the EU can reduce its dependence on external suppliers and safeguard its technological future.
In conclusion, semiconductor leaders are urging the EU to take a comprehensive approach to semiconductor supply chain resilience. By expanding the scope of the Chips Act to include design, materials, and equipment, the EU can enhance its semiconductor capabilities and ensure long-term competitiveness. In a rapidly evolving global landscape, investing in a robust semiconductor supply chain is crucial for driving innovation and economic growth.
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