Intel's Germany Factory Withdrawal Clouds EU's Semiconductor Ambitions
A major setback for the EU's semiconductor ambitions: US-based Intel has withdrawn plans to build a new factory in Germany, potentially undermining the 2022 Chips Act's success. Meanwhile, a new coalition, led by Germany's SPD, Green Party, and FDP, is pushing for revisions to the act and increased investment in semiconductor manufacturing.
The EU initially aimed to control 20% of the global semiconductor supply chain by 2030 through the 2022 Chips Act. However, the act fell short of its intended goals, with the EU currently on track to reach only 11.7% by 2030, a rise of less than 2% since 2022. The new coalition, reflecting Germany's central role in EU semiconductor policy, aims to target specific weaknesses in the EU's semiconductor strategies.
The Dutch-led coalition is pushing for a quadrupling of existing semiconductor investment in the EU. The coalition seeks a separate budget exclusively for semiconductor manufacturing and investment, and wants to speed up approvals for infrastructure spending, improve access to skills and finance, and secure critical chip technologies for the EU. All EU member nations have signed onto this coalition, demonstrating a united front in boosting semiconductor manufacturing in the EU.
Intel's withdrawal from Germany highlights the challenges the EU faces in achieving its semiconductor goals. The newly formed coalition, with Ursula von der Leyen as a key figure, is committed to revising the 2022 Chips Act and investing more in semiconductor manufacturing. The success of this initiative will be crucial in determining the EU's future role in the global semiconductor supply chain.
