Local and regional leaders in the EU have called
for increased investment to produce more
semi-conductors in Europe and reduce the dependence
on suppliers of raw materials, intermediate
products or chips from outside the EU, in a set of
recommendations adopted by the European Committee
of the Regions (CoR) on 12 October. Among the other
main messages of the opinion on the Chips Act is a
warning that the global shortage of semiconductors
is aggravating the structural weaknesses that the
COVID-19 and energy crisis are exposing at the
municipal and regional level, and that investments
in industrial capacity and innovation, as well as
on training measures are needed to ensure that
local economies rely on skilled labour and adequate
supplies.
The global semiconductor shortage has exposed regions'
and cities' dependence on supply from a limited number
of companies and its vulnerability to export
restrictions from third countries and other disruptions
in the current geopolitical context. The EU's share of
the global semiconductor market is currently 10% by
value, far below its economic weight. Despite its
strong global position in the production of materials
and devices, the EU is heavily dependent on
third-country suppliers for the design, manufacture,
packaging, testing and assembly of chips.
In order to support the expansion and diversification
of the chip sector in the European Union, local and
regional authorities call in the
opinion
on the
European Chips Act
on the EU to invest more and make new funding available
for the implementation of the Chips Act, building first
on existing clusters and ecosystems. The goal is to
reduce the strategic dependencies on third countries in
the semiconductor production, in the supply chains and
in the supply of raw materials and intermediate
products. Cities and regions play an important role in
strengthening the European semiconductor industry by
bringing together all stakeholders to develop local
manufacturing and research facilities, the opinion
says, arguing that there needs to be targeted support
for research and development of new technologies if
European industry is to have a secure supply of
semiconductors. In addition, more qualification and
training measures should be offered, especially at
regional level, for example by setting up a
"Semiconductor Academy" and a "Knowledge and Innovation
Community" to address the shortage of skilled labour
and promote interregional cooperation in the sector.
The need for more circular production of semiconductors
in Europe is another one of the main demands of the
opinion. Regarding chips production, the opinion argues
that circularity would boost the EU's strategic
autonomy.
The rapporteur
Thomas Schmidt
(DE/EPP), State Minister for Regional Development of
the Free State of Saxony, said: "The European Chips Act is a very important
initiative which the Committee of the Regions
strongly supports. We must build on our strengths
in semiconductors in Europe and use our potential.
Above all, research and development of new
technologies need targeted support. Overall, the EU
and the member states must invest more fresh money
to give a strong impulse for the European
semiconductor industry. That is why the funding of
the Chips Act should be part of the next MFF from
2028 on. The main benefit of the European Chips Act
is a secure supply of semiconductors for the
European industry. All regions in Europe will
benefit from this."
CoR members further highlighted the importance of the
European Green Deal in the semi-conductor sector and
its potential for circular economy, reuse, recycling
and energy efficiency. They called for more support in
the monitoring of the semi-conductor supply chains due
to its difficulty to obtain reliable information from
companies on the sustainability and diversity of their
products.
Background:
The shortage of semiconductors that was notably caused
by the outbreak of the COVID-19 pandemic in 2020, has
had a severe impact on the automotive and supplier
industry in Europe. In addition, structural changes in
the automotive industry are currently taking place:
conventional vehicles already require a large number of
chips, and the demand for cars with electric power
systems will increase enormously.
To ensure a just transition in the automotive industry,
t
he European Committee of the Regions has launched
the
Automotive Regions Alliance
– a political network of regions engaged for the
successful transition of the European automotive
and supply industry.
Its first political meeting will take place on 17
November in Leipzig, with member regions set to set the
Alliance's short- and medium-term strategic goals for
the next years and to discuss the needs for a just
transition for regions with a strong automotive
industry.
Contact:
Theresa Sostmann
Tel. +32 475999415
Theresa.Sostmann@cor.europa.eu