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Dutch warn against global decoupling in European Chips Act

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ASML workers take a look at a TwinScan on the ASML manufacturing facility in Veldhoven January 17, 2013. REUTERS/Michael Kooren/File Photograph

BRUSSELS, Oct 13 (Reuters) – The European Union shouldn’t decouple from the worldwide semiconductor provide chain in its efforts to create a European chipmaking ecosystem and be self-sufficient, the Netherlands warned this week.

World provide chains, a enterprise mannequin that has confirmed fashionable for the previous 30 years, have been disrupted by the COVID-19 pandemic, main governments world wide to think about bringing manufacturing operations nearer to house.

The European Fee, the EU govt, in September proposed a European Chips Act overlaying analysis and manufacturing capability, prompted by the chip scarcity that has disrupted the auto business, medical gadgets makers and telecoms suppliers.

The EU depends on Asian-made chips and has a diminished share within the provide chain, from design to manufacturing capability.

Decoupling from the worldwide provide chain could be a mistake, the Netherlands mentioned in a paper revealed on the federal government web site, pointing to the success of Dutch firms ASML , the world’s main producer of superior chipmaking instruments, and chipmakers NXP and Besi .

The European Chips Act “requires acknowledgement that decoupling of the worldwide semiconductor worth chain is an phantasm,” the paper mentioned.

“European pursuits are finest served by an open ecosystem that continues to be targeted on attracting funding, accelerating innovation and including market worth. Diversification and mutual interdependence promote resilience and stop one-sided dependencies.”

The Dutch additionally proposed the creation of devices to stop undesirable key strategic takeovers of chipmakers.

The Fee’s 2022 work programme foresees the Chips Act adopted within the third quarter of subsequent 12 months.

Further reporting by Francesco Guarascio; Modifying by Sandra Maler

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