Vestager: EU, US must avoid chip subsidy race
European Commissioner for Competition Margrethe Vestager warned on Friday against a semiconductor “subsidy race” in the European Union and the United States, in which companies could “try to play out governments against each other, scanning the landscape to see who would be willing to pay more.” She said that chipmaking self-sufficiency “is an illusion,” but that “fully segmenting markets, with each region specializing in just one part of the supply chain or one type of semiconductors, is not the right answer either.”
Vestager advocated for “diversification among like-minded partners, to build resilient supply chains we can rely on, and avoiding single points of failure.” She pointed at the creation of the EU’s Single Market Emergency Instrument next year, together with the development of an international supply chain emergency instrument, as a means of stabilizing the supply chains. She also stressed the need for better coordination on investment strategies, export controls, stress tests, and early warning mechanisms.
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