U.S., EU Want to Grow Semiconductor Industry in Unison
- May 16, 2022
- Posted by: Quatro Strategies
- Category: Legislation
The United States and European Union prepare to announce a joint effort to avert a “subsidy race” as they aim to boost semiconductor production.
The move is expected to be announced during the second meeting of the U.S.-EU Trade and Technology Council (TTC), taking place on Sunday and Monday in Paris.
The TTC has pledged at its inaugural conference last year in Pittsburgh to strengthen transatlantic cooperation on chip supply chains, curb China’s non-market trade practices, and take a more unified approach to regulating big, global technology firms.
The Biden administration officials say that the agreement on a transatlantic approach to semiconductor investments aimed at ensuring security of supply is close.
The officials further added that both sides want to encourage semiconductor investment in a coordinated fashion and avert a “subsidy race”.
The global shortage of chips has been disrupting various industries including automotive and electronics, forcing some companies to cut or halt production. A U.S. legislation that would grant chipmakers $52 billion in funding to expand output has been stuck in Congress.
An early warning system to address chip supply chain issues would also be introduced as part of the meeting.
The Council will also announce a new cooperation scheme which the official said was intended to combat disinformation online, such as false Russian claims related to its invasion of Ukraine.
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