Europe’s Ambitious Goals in Chip Production
As the global demand for processors and memory chips continues to rise, Europe is determined to seize a larger share of the strategic industry. Recently, European Commission President Ursula von der Leyen celebrated the construction of a new factory by Germany’s Infineon as a crucial milestone in mass chip production. The factory, located in the German city of Dresden, is part of Europe’s plan to double its global chip production share to 20% by 2030. In this article, we explore the significance of Infineon’s new factory and how Europe aims to achieve its ambitious goals in chip production.
Infineon’s Factory: Boosting Europe’s Chip Production Capabilities
European Commission President Ursula von der Leyen recognized the importance of the new Infineon factory at its groundbreaking ceremony. She emphasized that the factory would help Europe quadruple its current chip production capacity, reducing its reliance on Asia amidst growing geopolitical risks. Von der Leyen also highlighted the need for Europe to strengthen the supply chains of its most critical goods and technologies, including semiconductors.
Challenges in Europe’s Chip Production Industry
Despite the promising progress, Europe still faces challenges in its pursuit of chip production independence. The continent remains heavily reliant on individual suppliers for raw materials, particularly China, which holds a 76% share in producing silicon metals required for chip production. This dependency poses a risk to Europe’s chip production goals and reinforces the importance of diversifying its sources of raw materials.
Investments in Europe’s Chip Production Sector
In an effort to secure supplies of critical components and reduce dependence on Asia, the European Union recently agreed on a 43-billion-euro ($47 billion) chip subsidies plan. The plan aims to address the shortages caused by COVID-19 lockdowns, which have negatively impacted the output of various products, including phones, cars, and refrigerators.
Infineon’s new factory is not the only investment made in Germany’s chip production sector. The US group Wolfspeed is currently constructing a plant in Saarland, investing 2.75 billion euros. Additionally, Intel is building a large factory in Magdeburg. These investments collectively contribute to the growth of Europe’s chip production capabilities.
The Future of Europe’s Chip Production Industry
Infineon’s 5-billion-euro semiconductor plant, the largest investment in the company’s history, is expected to commence production in 2026. The factory serves as a significant step towards Europe’s goal of expanding its chip production capabilities and reducing reliance on Asian suppliers. With the European Union’s substantial investments and chip subsidies plan, Europe is well-positioned to strengthen its position in the global chip production industry in the coming years.
