Semiconductors made in Europe: EU weighs a deal with TSMC or Samsung to set up a chip factory, according to Bloomberg
Southeast Asia and especially Taiwan is the origin of virtually all chips in current devices. In an attempt to modify this and avoid dependencies on others, the European Union is considering the manufacture of semiconductors directly in the territory of one of the member states. According to Bloomberg, the idea would be to reach an agreement with one of the large manufacturers to set up a European factory.
Chips are currently used in all types of devices. From mobile phones and computers to cars (where there is a major bottleneck right now). A factory in Europe would allow the production of chips from 10 nanometers down. We are currently going by 5 nanometer chips and with plans for 3 nanometer chips.
According to an official from the French Ministry of Finance, TSMC and Samsung are the two subjects most likely to participate in this project. Currently both are the leaders in the global manufacture of chips and practically all the major brands of electronic products are supplied by one of them. TSMC have indicated that the company “does not rule out any possibility, but there is no concrete plan at this time.”
For the moment however there is nothing concrete. There is no place for this chip factory in Europe, no chosen partners, no date for the start of the project, or even sure confirmation of it. We will have to wait for the next few months to see if the European Union decides to move forward firmly on this.
The independence of Southeast Asia
The European Union plan for take away the chip production market from Southeast Asia it is not unique. Other regions like the United States, China or Japan have also opted in recent years to increase local production. All this with the aim of diversifying production and consequently being more prepared for unforeseen events and not having such a large dependence on one or two companies.
Carrying out this however is not that simple. It is not only a question of money, which also requires billions of investment for such progress. It is also a matter of logistics, resources and time. Taiwan and in particular TSMC has evolved in this market intensively for decades, relying on some of the best tools and resources on the global market to manufacture its chips. If the European Union wants to be at that level, it will need a tremendous effort with large technological investments.
Via | Bloomberg