Posted on 05/23/2023 4:12:25 AM PDT by FarCenter
Europe is starting to reverse the decline of its once-strong semiconductor industry, a potentially important turn in the escalating tech war pitting the US and its allies against China.
Despite having some of the world’s best technology – and despite the large size of the European economy – Europe’s chip industry has dwindled to just a third of the silicon wafer processing capacity of Japan and less than half of the US.
Both the private sector and EU bureaucracy are now working to reverse the decline, though the hyperbole of some politicians is obscuring the situation. For example, on May 16, EU Commissioner for Internal Market Thierry Breton delivered the keynote address at the IMEC Technology Forum in Antwerp. Among other things, he said:
“We are refusing any attempt of geographical segmentation where Europe would produce mature nodes, while Asia and US would produce advanced nodes.”
“Europe cannot and will not be considered as a mere observer in any ‘underground technological battle’ between blocks.”
“Europe will not be subject to the choices of others. This is why I want a Europe that knows how to lead on semiconductors.”
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Practically speaking, the problem in Europe is the same as the problem in the US, only arguably worse: limited production capacity and high dependence on Taiwan, specifically TSMC.
This situation is the result of investment decisions made over the past two decades, not a secret conspiracy. Breton is, of course, aware of this, having been a prominent business executive and French minister of economy, finance and industry.
In 2022, European spending on semiconductor production equipment nearly doubled, but still accounted for only 5.8% of the global total, according to industry association SEMI.
The figure for the US was 9.7%, after an increase of almost 40%. The figures for China, Taiwan and South Korea were 26.3%, 24.9% and 20.0%.
At the end of 2021, Europe’s share of worldwide integrated circuit wafer capacity was only 5%, according to Knometa Research. That was dwarfed by the Americas (11%), Japan (15%), China (16%), Taiwan (21%) and South Korea (23%).
>> EU bureaucracy are now working to reverse the decline
“We’re from the government and we’re here to help!”
Good luck with that.
I’ve been in a lot of EU fabs, early to mid 2000’s. Their problem then, as it is now, is largely their socialism and lack of work ethic.
Pay more and you will get high quality workers.
You also have to remove idiotic work restrictions — and build a muscular management that EXPECTS quality (without fear of reprisal if they do).
They would be wise to produce as much of the vital commodities and raw materials which they need as they possibly can inside the EU rather than making themselves reliant on China....or places China can reach/threaten. Of course the same was true vis a vis Russian Energy and they refused to heed America’s decades long warnings to them on that.
Yeah, she's a professional voice caster. Pretty cool gig...
In order to produce semiconductors you need semiconductor grade Neon gas which is difficult to produce. There are three primary sources for this gas in the world right now. China, Russia and the Ukraine. The Russians are trying to make sure there are only two sources in the future (they already destroyed/captured about half of Ukraines production).
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