EU Launches Microelectronics Initiative to Boost Production Amid Global Shortage
The global shortage of microelectronic components has led to increased demand, strained supply chains, and geopolitical conflicts. Meanwhile, four in ten companies believe Germany's technological lead is no longer catchable. The EU is responding with plans for a European initiative in microelectronics to boost production capacities and expertise in Europe.
The demand for digital components is high across various industries. Notably, the automotive industry and machinery and plant engineering have a high demand at 61 percent each. Two-thirds of German companies (66 percent) import such components. The EU aims to address this by creating a European initiative in microelectronics. Bitkom, a digital association, advocates for aligning industrial policy with the unique conditions of the digital economy. The COVID-19 pandemic has also exacerbated international inequalities in digital technology competition, with three-quarters of companies noticing this intensification. Across all industries, hardware components are in demand, with particularly high demand in the chemical and pharmaceutical industry (72 percent) and the financial sector (71 percent). Among larger companies with 500 or more employees, 83 percent import these digital components.
The EU's planned European initiative in microelectronics seeks to strengthen Europe's production capacities and expertise in this crucial area. This move comes amidst high demand for digital components across various industries and increased international competition. The initiative aims to secure Europe's technological sovereignty and foster innovation.
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