June 10, 2023

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Dutch IT Channel – EU and US set up joint warning system for chip shortages

This was announced by the spokesperson of the US government. The system is intended to prevent a semiconductor race between the EU and the US. The plans have been discussed over the past few days.

Reducing dependence on foreign countries

Both the EU and the US are actively working to reduce dependence on foreign chips in the chips industry. Both countries use subsidies and tax breaks to encourage chipmakers to set up chip factories on European and American soil, respectively. For example, Intel operates two large chip factories in Germany, for which the American company receives billions of euros in subsidies.

The EU and the US want to cooperate in coordinating such investments in the chip sector. This should, inter alia, prevent the rise of subsidy race.

Chip shortages have led to big problems before

Shortages of chips have previously led to major problems in both the EU and the US. The shortage occurred during the COVID-19 pandemic, when many people started working from home, and demand for devices to support this skyrocketed. At the same time, various chip factories had to close their doors due to the lockdown. As a result the deficit rose sharply, affecting various sectors.

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