The European Union's aspirations to become a global powerhouse in semiconductor production are facing significant headwinds. Recent developments have cast doubt on the region's ability to meet its ambitious goal of doubling its share in the global chip market to 20% by 2030. Industry experts, including Frank Bösenberg, head of the Silicon Saxony trade association, now view this target as "almost unattainable." The setback comes in the wake of Intel's decision to halt construction of its chip factory in Magdeburg, Germany, despite substantial promised subsidies.
This development underscores a broader trend of major tech investments bypassing Europe, raising concerns about the continent's competitiveness in high-tech sectors. The absence of cutting-edge semiconductor fabrication facilities on European soil means continued dependence on overseas suppliers for advanced chips crucial for AI and autonomous driving technologies.
The challenges extend beyond Intel, with other U.S. firms like Wolfspeed reconsidering their investment plans in Europe. These setbacks highlight structural issues in the European business environment, including high levels of regulation and taxation, which may be deterring potential investors.
As Asia and the United States forge ahead in semiconductor technology, Europe faces the risk of falling behind in yet another critical tech domain. This situation calls for a reassessment of Europe's industrial policies and investment strategies to maintain its relevance in the global high-tech landscape.
Generally speaking, how bad must things be for the European Union as a business location if even billions in subsidies can no longer convince foreign companies to invest in the old continent? We are on the way to becoming an industrial museum that can only be kept half alive by subsidies and state interventionism. We can see how this works by looking at the example of the green raid, which politicians have labeled the Green New Deal: a panic narrative is created that helps squeeze money out of the taxpayer, an incentive structure is created by a belt of media and subsidy companies that defend this narrative and, ultimately, pseudo-growth that provides the state with further revenue. It's an economic death spiral!
10 sats \ 0 replies \ @Golu 18 Sep
During my 10 years in logistics, I've never listened anything significant about semiconductor industry in Europe. I think the politicians are just overreacting. Taiwan is the king in Semiconductor industry and will be there for long. Europe is not gonna be anywhere close to Taiwan and China.
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While US has opened up its funding to manufacture semiconductor chips in India #680697, I highly doubt Europe can double it or they will make it as cheap as India can with ultra cheap conditions.
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No they can't after doubling down on destroying their energy supply
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I don't understand why they keep on showing false promises to their people whereas they should just now accept that they are the ones who were wrong and should start afresh. Their green propaganda is over.
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It s a scheme to gain even more power
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' becoming an industrial museum' sums it up quite nicely.
we'll just all end up like Greece and Italy, nice for tourism and reminiscing on the good old days
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I heard a good comparison that Germany is 20 century country in 21 century. Weak services not really much "economy of knowledge" etc. Everybody knows how to build cars and electro cars are even simpler.
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Agree 100%, i am in Italy and is becoming a Disneyland for rich guys. Life for normal people is getting quickly not economically sustainable, in a few years all manufactoring industry will be be wiped out by Asia and other countries. We will live with the "fuckin" italian style brand...but touristic countries never attract talents or innovators. Competences will decline faster than many suppose.
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it's inevitable. I'm in the Balkans at the moment and anyone finishing school;s first goal is to escape to Germany or something as the wages are higher (they don't think about the tax etc)
the other half just wants to be a software or coder but what works today might not be a thing tomorrow.
my question has always been, how is Germany supplying jobs to like everyone from around the EU
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So to overcome this, what should be done? Is there any alternative for them to solve this problem?
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63 sats \ 1 reply \ @TomK OP 18 Sep
They are trying to do this by giving more of the same: more subsidies, more cheap money, lower interest rates, more state control. We have learned that this leads nowhere! So basically, the opposite should be done: free markets, lower taxes, lower government spending, more private involvement, free capital formation
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free markets, lower taxes, lower government spending, more private involvement, free capital formation.
In fact, this is what some local people hope for, but the government will not allow it, because everything must be taxed.
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Let's not forget that we have ASML and I think I heard that a TSMC factory is being built in Germany.
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32 sats \ 1 reply \ @TomK OP 18 Sep
I think in Germany they'll build nothing. But I'll search for it
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TSMC is building a fab in Dresden, Saxony. Construction started last week or so. AMD is also in Dresden (for 20 years or so), but no fab afaik
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crucial for AI
Which AI.
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