The VDMA, in principle, supports the cornerstones of EU Commissioner Thierry Breton's semiconductor initiative. This is about more than chip factories: manufacture of production equipment and chip design capabilities are crucial for technological sovereignty.

Brussels/Frankfurt, 29 September 2021 – "It is good that Commissioner Thierry Breton wants to take a broader approach regarding chip production and wants to focus more on research and international cooperation," says VDMA Executive Director Thilo Brodtmann on the EU Commission's ideas for a "Chips Act". In the VDMA's view, the Chips Act must not be only about chip factories, but also support competitive and innovative value chains: "This also includes the manufacture of production equipment and chip design. Otherwise chip factories are just extended workbenches and do not serve technological sovereignty," warns Brodtmann.

Creating export opportunities - not only for the end products 

From the VDMA's point of view, Europe needs technological sovereignty not only for end products, but in terms of technological know-how as a whole. Then there will be export opportunities for European companies at all levels of the value chain and a stronger international competitive position. "There are many EU companies - also within VDMA - that offer world-leading technologies for chip manufacturing. The EU should build on this strength," demands Brodtmann.

The VDMA also calls for the semiconductor strategy to be aligned with the needs of EU industry: "In industries in which the EU is strong, such as automotive or mechanical engineering, there is less need for 2-nanometre high-end chips, but rather for specific electronic components. It is imperative that the Chips Act focusses on the needs of EU industries," Brodtmann demands.

Do you have any questions? Kai Peters, VDMA European Office, will be happy to answer them: kai.peters@vdma.org or +32 2 7068219.