It’s no news that the global chip shortage has been quite detrimental for production companies who need them to produce almost everything. Companies around the world have been trying to mitigate the effects of the global chip shortage in their own way. Last month, about twenty Japanese companies decided to work withTaiwan Semiconductor Manufacturing Co. (TSMC), and the collaboration is aimed at developing a chip–making technology in Japan and reducing the effects of the global chip shortage. The effects of the shortage continue to rage on with industry data showing that chip scarcity pushed China’s gross auto sales down12.4% in June.
The European Union is looking to become a major headliner in the chip production sector over the next ten years.
According to comments released by Italy’s industry minister after an industry meeting, Thiery Breton – the European Union Industry Commissioner said the bloc aims to increase its production of chips to 20% of global supply, from the current 10%, over the next ten years.
In May, the Commissioner for Internal Markets -Thiery Breton said that the EU is ready to dedicate significant funds to expand European semiconductor production and support its computer supply chain. He also added that Europe would need to expand its capacity to build mid-level chips before it could achieve a goal of doubling its share of global semiconductor production to 20% and producing the most advanced, 2-nanometer chips by 2030.
The chip shortage had been on for months now and is due to the coronavirus, continually increasing demand for items that are produced using these chips, and sanctions against Chinese Technology companies by the U.S. Government. According to experts, the shortage is expected to last for quite a long time. In an interview with Handelsblatt newspaper in May, the founder of Dell Technologies – Michael Dell said that the chip shortage would probably last a few years. “The shortage will probably continue for a few years. Even if chip factories are built all over the world it takes time”, he said in his interview.