European Union introduced 43 billion chip subsidy program, more details disclosed, ASML’s concern is justified!

2022-07-04 0 By

With the development of science and technology, now more and more industries have chip figure, that is to say, the chip field has become a competitive place for countries.If a country has a strong strength in the chip field, it will not only need not worry about other countries’ decisive influence on its various fields, but also enhance its voice in the international arena, which can be said to kill two birds with one stone.In the US, for example, chipmaking giant TSMC and lithography giant ASML were forced to accept the ban because many companies in the chip industry use American technology.Companies that are restricted by American technology must seek PERMISSION to ship goods freely.However, it is not hard to see from the various performances of the US side that it has always adopted the principle of “American enterprises first”.In addition, although the United States has American technology and many American companies are giants in the chip market, the United States is still very anxious.Why is that?Because qualcomm, Intel, AMD and other American companies are more focused on chip design, Intel, which used to be the best in chip manufacturing, is still stuck in the 7nm process.In an effort to regain control of chipmaking technology, America recently passed a $52 billion chip subsidy package.On the one hand, it can stimulate local enterprises to increase research and development efforts and strive for new breakthroughs in chip manufacturing technology.On the other hand, TSMC, Samsung and other leading chip manufacturers can be attracted to set up factories in the United States by importing technology.In addition to the United States, the European Union has also realized the importance of the chip field.Following the US $52 billion chip bill, the European Union followed suit with a 43 billion euro chip bill on February 8.The EU’s plan is to increase chip production to 20 per cent of global capacity by 2030.In other words, the EU wants to double chip production capacity in eight years with this chip scheme.As for the EU’s move, ASML came out to support it at the first time.ASML noted that in addition to increasing chip production capacity, the EU also needs to focus on global advances in chip equipment.ASML also raised concerns that the EU is not spending enough on chips.Why did ASML raise such concerns?That’s because with the announcement of the EU chip proposal, more details about the CHIP in the EU have been revealed.According to experts, the current chip manufacturing process in the EU is still at the 22nm stage.The EU’s hopes of going from 22nm to 2nm with 43 billion euros are unimaginably high.The more advanced a chip is, the more difficult it is to develop, and the more money it will cost to develop.In addition to the difficulties in chip manufacturing, the EU is not competitive in chip design.If some EU companies want to make a breakthrough in chip design in the future, they will most likely have to rely on US equipment.In this sense, this is contrary to the eu’s original purpose.The EU itself has invested 43 billion euros in the hope of becoming “independent” in the chip industry, but the reality is that the EU has a long way to go in both chip manufacturing and chip design, apart from ASML’s success in lithography.In other words, to catch up with global leaders in chip manufacturing and chip design, the EU will need to invest huge sums of money.ASML’s concern is justified. The EU’s 43 billion euro chip scheme sounds like a lot, but it is no doubt a drop in the bucket when it comes to all aspects.What do you think about that?Welcome to the last three companies, thank you for your support!