The European Union Approves Spending Plan for Computer Chips

2023-07-27

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  • The European Council gave final approval Tuesday to the European Parliament's plan to expand semiconductor production in Europe.
  • 2
  • Semiconductors are computer chips which are important for everything from washing machines to cars.
  • 3
  • The EU's new law supports its larger aim of decreasing its dependence on Asian manufacturers for computer chips.
  • 4
  • The EU's Chips Act will provide $47 billion in public and private funds and permit state aid for Europe's semiconductor industry.
  • 5
  • EU leaders want to make money available for new semiconductor manufacturing.
  • 6
  • The EU's goal is to double the 27-nation group's share of the world's semiconductor production to 20 percent by 2030.
  • 7
  • Asia produces most of the world's semiconductors.
  • 8
  • The important part Asian chipmakers play became clear during the COVID-19 pandemic.
  • 9
  • Western manufacturers blamed problems with supply chains for shortages of cars, smartphones, and medical devices.
  • 10
  • Governments in Europe and North America are now trying to balance their use of suppliers.
  • 11
  • The U.S. launched its own $52 billion Chips Act, and Britain has a smaller $1.2 billion chip plan.
  • 12
  • Companies like Intel have announced large expansion plans for Europe.
  • 13
  • The EU Chips Act will take effect after it is published in the Official Journal of the European Union.
  • 14
  • I'm Jill Robbins.
  • 1
  • The European Council gave final approval Tuesday to the European Parliament's plan to expand semiconductor production in Europe.
  • 2
  • Semiconductors are computer chips which are important for everything from washing machines to cars.
  • 3
  • The EU's new law supports its larger aim of decreasing its dependence on Asian manufacturers for computer chips.
  • 4
  • The EU's Chips Act will provide $47 billion in public and private funds and permit state aid for Europe's semiconductor industry.
  • 5
  • EU leaders want to make money available for new semiconductor manufacturing. The EU's goal is to double the 27-nation group's share of the world's semiconductor production to 20 percent by 2030.
  • 6
  • Asia produces most of the world's semiconductors. The important part Asian chipmakers play became clear during the COVID-19 pandemic. Western manufacturers blamed problems with supply chains for shortages of cars, smartphones, and medical devices.
  • 7
  • Governments in Europe and North America are now trying to balance their use of suppliers. The U.S. launched its own $52 billion Chips Act, and Britain has a smaller $1.2 billion chip plan. Companies like Intel have announced large expansion plans for Europe.
  • 8
  • The EU Chips Act will take effect after it is published in the Official Journal of the European Union.
  • 9
  • I'm Jill Robbins.
  • 10
  • Gregory Stachel adapted this story based on reporting from The Associated Press.
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  • ________________________________________________
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  • Words in This Story
  • 13
  • chip - n. a very small piece of hard material (often silicon) that contains many electronic circuits and is used in manufacturing electronic devices
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  • fund - n. an amount of money that is used for a special purpose
  • 15
  • supply chain - n. a network of businesses that supply the materials and parts needed to provide people with products and goods
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  • ________________________________________________
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