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The European Union established the Semiconductor Alliance to replace foreign fabs. Four companies including STMicroelectronics and ASML have joined.

Published :4/30/2021 9:50:53 AM

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News on April 30 According to reports, the European Union’s internal market commissioner Thierry Breton said yesterday that 22 EU member states have jointly established a new semiconductor alliance to support European semiconductor R&D and manufacturing and reduce the EU’s dependence on suppliers from other countries.

As countries around the world have begun to strengthen the autonomy of their own semiconductor supply chains, the EU is planning to launch IPCEI (Important Plan for Common Interest in Europe), allowing the EU government to inject capital in accordance with looser national aid regulations, and companies can also cooperate on the entire plan. In addition to the 22 member states, the new semiconductor alliance members also include STMicroelectronics, ASML, NXP (NXP), and Infineon.

The goal of the plan is to double the EU’s semiconductor market share to 20% by 2030, said Thierry Breton, European Commissioner for Internal Markets.

Thierry Breton also said: "We hope to bring the business community and member states together within the framework of the European Semiconductor Union to initiate the necessary investments."



Thierry Breton also added that as long as Europe maintains a "dominant position", the EU welcomes cooperation with foreign manufacturers.

In addition, Thierry Breton will hold a video conference today with Intel CEO Pat Gelsinger and TSMC’s European subsidiary Maria Marced to further discuss the possibility of the two companies setting up fabs in the EU. Thierry Breton will also have talks with Samsung representatives.

It is understood that diplomats and Taiwanese officials said that TSMC has no interest in building factories in the EU.

At the same time, three EU officials said that they are not satisfied with the strategy of relying on non-EU companies to build factories, nor are they satisfied that cooperation between EU companies and foreign counterparts may be more effective.

The report pointed out that compared with Asian competitors, the European semiconductor industry is dwarfed, and there is no leading company with the financial resources required to build new factories.

It is reported that many EU countries, including Germany, France, and the Netherlands, plan to spend up to 145 billion euros in the next 2 to 3 years to improve the status of EU countries in the global semiconductor industry and establish a complete semiconductor value chain. The source pointed out that the EU plans to provide more than tens of billions of euros in subsidies to attract foreign companies to set up factories.

At present, STMicroelectronics and NXP declined to comment, and the Breton office, Infineon and Asmard did not immediately respond to reporters' requests for comment.