In this context, an important step could be the preparation of a new “chip act” that would allow Brussels to intervene in crisis situations in the supply of semiconductors and renegotiate manufacturers’ contracts.
The initiative is primarily related to the growing risks of Europe’s dependence on Asian supplies and the growing technological confrontation between the US and China.
According to the Financial Times with reference to the draft document, the European Commission will be able to require manufacturers to disclose data on production capacity. Fines of up to 300,000 euros are expected for refusal to provide such information.
The document also provides for the right of the EU to demand from semiconductor manufacturers to prioritize the fulfillment of orders for critical industries in conditions of shortage, even if this requires revision of existing commercial contracts.
Brussels strengthens control over strategic technologies
At the same time, the EU is considering the introduction of a mechanism for centralized procurement of chips, similar to the joint procurement of vaccines during the COVID-19 pandemic.
Brussels expects that this approach will avoid competition between EU states for limited supply volumes and strengthen the Union’s negotiating position.
According to the FT, work on the bill accelerated amid concerns that semiconductor supplies could become an instrument of economic pressure amid growing rivalry between Washington and Beijing.
Of particular concern to the EU is its reliance on Taiwan, which provides more than 90% of the world’s production of the most advanced chips. Any escalation around Taiwan could lead to a global shortage of components used in the production of smartphones, cars, server equipment and medical devices.
Earlier Bloomberg reported that the European Union is also discussing the possibility of obliging Chinese companies to transfer technology in exchange for access to key sectors of the European market, including the automotive and battery industries.
