Achieving semiconductor independency is ‘not doable,’ EU competition chief says

[superadmin]

• “What is important is that there is a different level of production capacity in Europe,” Vestager said.
  
• The European Commission has said that it wants to double the market share of semiconductors in Europe by 2030.
  
• At the moment, “on a good day,” Europe’s market share is at 10% — it used to be 40% in the 1990s, according to data from the commission.
  
• Vestager said the EU is working with the United States to identify what is causing shortages in the production of semiconductors. 
  

Becoming completely independent on semiconductor production is just “not doable” because of the high levels of investment needed, the EU’s competition chief admitted Monday.

Carmakers and other businesses in the bloc have struggled in the wake of the coronavirus pandemic, as supply chains were impacted and limited access to the much-needed technology. As a result, European policymakers have been looking at ways to boost production of computer chips.

For some officials, the EU needs to become a global powerhouse in this space — but Margrethe Vestager, the EU’s competition chief, has cautioned against any unrealistic expectations.

“The numbers I hear of, sort of, the upfront investments to be fully self-sufficient, that makes it not doable,” Vestager, executive vice president of the European Commission, told CNBC in an exclusive interview in London.

“What is important is that there is a different level of production capacity in Europe,” she said.

The European Commission, the EU’s executive arm, has said that it wants to double the market share of semiconductors in Europe by 2030. At the moment, “on a good day,” Europe’s market share is at 10% — it used to be 40% in the 1990s, according to data from the commission.

- More -