EU Enters Semiconductor Manufacturing... "Aiming to Double Market Share by 2030" [Tech War, Birth of Advanced Nations]

EU 'Semiconductor Act' Passage Spurs Surge in Equipment Imports
Economy, Industry, and Military Weapons Aim for Essential Semiconductor Self-Reliance

[Asia Economy Reporter Hyunwoo Lee] European countries, which have so far focused on semiconductor design and software, are recently actively promoting semiconductor manufacturing. This is based on the judgment that semiconductor manufacturing, which has mainly relied on Taiwan due to Russia's invasion of Ukraine, the global supply chain crisis, and the sharp confrontation between China and the West, can no longer be entrusted solely to external parties. The European Union (EU) aims to more than double its semiconductor manufacturing share by 2030 compared to the current level.

According to AFP, on the 21st and 22nd, the EU Executive Commission held a 'Digital Assembly Meeting' in Toulouse, France, where economic ministers from 27 member countries gathered. At this meeting, specific measures to achieve a 20% global semiconductor market share by 2030, as declared in the EU Semiconductor Act (EU chip Act) announced in February, were discussed.

Before and after the passage of the EU Semiconductor Act, the investment enthusiasm of European countries and companies in semiconductor manufacturing has significantly heated up. According to the semiconductor equipment market statistics report compiled by the Semiconductor Equipment and Materials International (SEMI) on the 2nd, Europe's semiconductor equipment imports in the first quarter of this year surged by 119% year-on-year to $1.28 billion. Although the import volume itself still lags far behind Asian countries such as China ($7.58 billion), South Korea ($5.15 billion), and Taiwan ($4.88 billion), a steep growth trend is expected going forward.

Incentives to attract semiconductor factories are also being strengthened. Intel, which has decided to establish new semiconductor factories and research institutes in Germany and Ireland, is reportedly receiving semiconductor subsidies worth 6.8 billion euros (approximately 9.28 trillion won) from the EU this year.

Europe has so far focused more on fundamental technology and design development rather than semiconductor manufacturing. However, its overall semiconductor market share is only 9%. The packaging and assembly sectors, the final stages of semiconductor production, are almost entirely dependent on Asian regions such as Taiwan.

Since Russia's invasion of Ukraine, the necessity of semiconductor self-reliance has been strongly raised among European countries. Martin Rasser, senior researcher at the Center for a New American Security (CNAS), explained in an interview with Deutsche Welle, "With Taiwan responsible for more than half of the world's semiconductors, Europe, where the Ukraine crisis occurred, cannot help but strategically consider semiconductor production for military weapons," adding, "European countries such as the Netherlands and Germany are essential equipment-producing countries for semiconductor manufacturing, so cooperation with the United States and Asian countries must continue to be strengthened."