EU's Microchip Expansion Plans in Doubt After Intel Scraps German Factory
The EU's microchip industry expansion plans face uncertainty as Intel scraps a key factory project in Germany, while EU officials and member states debate the strategy's effectiveness.
In 2023, the EU and its parliament committed to substantial investments to grow the microchip industry within the union. However, Intel's recent cancellation of its chip factory in Magdeburg, despite planned state funding of around nine billion euros, has raised concerns.
German Economics Minister Katherina Reiche and Research Minister Dorothee Baer have criticized the EU's Semiconductor Strategy, calling for a comprehensive overhaul. They argue for faster approval procedures and increased budget consideration for the microchip industry. The ministers believe the current strategy lacks clear direction.
The microchip industry plays a vital role in sectors such as automotive, telecommunications, defense, and artificial intelligence. Yet, EU member states doubt the union's ability to reach its targeted microchip market share of 20 percent by 2030.
The EU Commission is now reviewing the law, inviting member states to participate in the process. The future of the EU's microchip industry expansion hangs in the balance, with Intel's factory cancellation and ongoing debates about the Semiconductor Strategy's effectiveness.
