If it seems that everything is gradually returning to normal, the European car industry, but not only, does not intend to go through a situation similar to that of a few months ago.
If you’ve been looking to buy a new car in recent months, your favorite dealership has probably announced some pretty intractable delays. In some cases, announced delays before the delivery of the car can be more than a year and a half.
Europe plans to double its market share
To this end, the European Parliament supported the European Union’s plan to develop the semiconductor device manufacturing sector and reduce its dependence on Asia in this strategic field. The document was adopted by an overwhelming majority of votes “for” (587 votes “for”, 10 “against”, 38 abstentions).
Known as the “Flea Law”, it sets a target for the EU to double its current market share to reach 20% of the global market by 2030. For this, it will be necessary to increase its production four times.
In recent decades, Europe’s semiconductor manufacturing capacity has been shrinking, becoming dependent on Asian manufacturers that dominate the global market, such as Taiwan (where 90% of the most advanced chips are made), South Korea and, increasingly, China.
Working with the “unexpected”
This resolution is also a part Europe’s desire to reduce its vulnerability to geopolitical upheavals, especially after the war in Ukraine, which revealed the dependence of Twenty-Seven on Russian gas. A possible military conflict between China and Taiwan, which will lead to the end of semiconductor exports, can paralyze the European industry today.
The text provides for investments in the amount 43 billion euros from both the public and private sectors for the development of production centers on the European continent.
“Industrial policy is impossible without factories (…). Gone are the days when Europe was content to invest in research and transfer production.”– said Thierry Breton, the European Commissioner for the Internal Market, before the members of the European Parliament, who is at the origin of this regulation.
A shortage monitoring system will be put in place so that the Commission can anticipate any supply difficulties and act in a crisis.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.