ZVEI: Subsidize the chip industry in Europe, but do it right
A study by the industry association ZVEI recommends greater support for certain chip manufacturers and PCB production in order to catch up.
(Image: c't)
The promotion of semiconductor technology with tax revenue pays off for the European economy: this is the central conclusion of a study presented today by the German Electrical and Electronic Manufacturers' Association (ZVEI).
However, ZVEI President Gunther Kegel emphasizes: "Funding (should) focus on existing strengths in the future." This can be read as criticism of the previous EU chip funding, which explicitly wanted to bring the most modern chip manufacturing processes to the region, for example in the form of the Intel fabs in Magdeburg, which have failed for the time being.
Technological sovereignty is weakening
The ZVEI President explains: "Europe needs its own technological foothold that cannot be ignored internationally." Because the microelectronics industry is crucial for Europe's competitiveness and technological sovereignty, the EU must step up its commitment. Europe only has a strong market position in the areas of power semiconductors, microcontrollers and sensor technology. Kegel: "The current funding commitments can only be a first step, they must be expanded."
And funding for chips alone is not enough; instead, as in the USA, funding must be extended to the microelectronics ecosystem, for example to the production of printed circuit boards (PCBs). According to the ZVEI, the EU's share of the global PCB market is now well below five percent. 85 to 90 percent of the global production volume is manufactured in China and Taiwan.
Promotion pays off
The study "From chips to opportunities: The importance and profitability of microelectronics promotion" presented by the ZVEI comes from Strategy&, PwC's global strategy consultancy.
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According to study author Tanjeff Schadt, the funds invested in microelectronics generate a high return. The return is between 30 and 40 percent and the money invested is amortized after nine to twelve years.
The promotion of microelectronics increases the annual gross value added in Europe directly and indirectly by 33 billion euros, while tax revenues increase by 7.9 billion euros per year. In addition, 65,000 new jobs would be created in Europe, 49,000 of them in Germany alone.
However, according to the study, the European Union's 20 percent target for global semiconductor capacities by 2030 cannot be achieved. Even with the subsidies currently provided, the share would fall from the current 8.1 percent to 5.9 percent in 2045.
(ciw)
