The EU faces a shortage of disk end of a huge subsidy to recruit TSMC and other 3 set up factories

German media reported that EU officials on the 30th will meet with the United States chip industry leader Intel, Taiwan TSMC and South Korea Samsung Electronics and other representatives of global chip makers, hoping to improve the EU’s chip autonomy, but also prepared a scale of tens of billions of euros in subsidies to attract foreign investors to set up factories. In this regard, TSMC low-key not to respond.

The EU’s operational commissioner for industry and services Breton 30 will meet with Intel’s chief executive officer, and held a video conference with TSMC’s European subsidiary general manager Merced.

Germany’s “Frankfurter Allgemeine Zeitung” reports that Breton will also meet with Samsung representatives. He hopes to convince these chip makers to build a fab in Europe as part of the EU’s “digital compass” strategy.

The report said that Breton is also ready to meet next week with the Dutch semiconductor production equipment manufacturer Esmer and the CEO of semiconductor maker NXP, to discuss the possibility of building a European semiconductor industry chain, the scale of investment discussed may reach billions of euros.

In order to compete with the United States and Asia’s new fab planning, the EU intends to prepare tens of billions of euros in subsidies to attract foreign investors to set up factories. Breton plans to negotiate with Intel’s new factory in Europe, the scale will be larger than Europe’s current largest wafer production base, GeChip’s factory in Dresden, Germany, but also several times. Intel has expressed support for the EU’s plans, will also expand manufacturing operations in Europe, the introduction of seven-nanometer process.

Bloomberg information pointed out that the EU will be announced next week at the earliest part of the details of the new semiconductor plan, one of the key objectives is to be able to higher than TSMC and other large factories, the efficiency of the production of advanced semiconductors. The “Digital Compass” plan aims to double Europe’s share of global semiconductor production to at least 20 percent by 2030, with a focus on chips below five nanometers.

Breton said the automotive industry is suffering from a chip shortage, highlighting the need for Europe to strengthen the semiconductor chain. Europe is particularly interested in advanced processes below ten nanometers and intends to expand its capacity for design and manufacturing.

He said that Asian and U.S. manufacturers are welcome to set up factories as long as he can decide the conditions, “Europe is not naive, but also does not want to be isolated,” he stressed that the EU intends to cooperate with international partners, but also wants to sit in the driver’s seat.

But Bloomberg information analysis, the EU “digital compass” plan is still facing several problems, including the adequacy of the silver bullet, whether there is strong enough political will, and the EU wants to pull together the United States and Asia semiconductor industry, after all, are not European companies.