What Stands in the Way of the EU's Chipmaking Dreams

A multitude of financial and technical barriers will keep the European Union from building a self-reliant semiconductor industry, but the bloc's attempts to realize that vision will nonetheless help bolster Europe's resilience against supply shocks in case a crisis in Asia takes Taiwan's chips offline. On July 25, the European Council approved the European Chips Act, paving the way for 43 billion euros ($47.5 billion) in subsidies aimed at helping the European Union achieve its goal of producing 20% of the world's semiconductors by 2030 (up from 10% in 2020). As a part of these plans, Germany's economy ministry announced on July 25 that it would provide about 20 billion euros ($22 billion) in aid by 2027 in an effort to boost the country's semiconductor industry and the production of chips. The announcement comes after Berlin inked an agreement with U.S. chipmaking giant Intel in June that will see the...