The European Union announced new regulations to control the chip market, following the example of the United States? Chinese companies may be restricted!
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In order to promote the development of the local chip industry, the EU has launched a chip subsidy worth 43 billion euros in a timely manner, and actively attracts foreign companies to set up chip factories in the European region. Among them, TSMC and Intel have received more than 15 billion euros in chip subsidies and hope to set up factories in Germany.
It's worth noting that TSMC and Intel have been at loggerheads over these subsidies. Until those close to these subsidies are removed, Germany insists that the latter maintain their original chip subsidy commitments. From this, it can be concluded that Europe intends to develop the local production of chips.
However, things don't seem to be that simple. After all, the EU has officially announced another new regulation as part of a separate law on chip subsidies.
The European Commission said it would call on EU member states to impose stricter controls on foreign direct investment in economically sensitive sectors in their countries. In short, not just any company can come to Europe to open a factory and get a subsidy. On the contrary, there are strict acceptance conditions, and companies that do not meet the relevant standards cannot open factories in Europe.
It is not surprising that these excessive protectionist measures have spread from the automotive market to the chip market.
ASML has made it clear that the new regulations are simply an attempt to manipulate the chip market and enable EU companies to form a self-sufficient semiconductor industry chain more quickly. However, this is a daunting task, not only because it is challenging, but also because there are many more difficulties ahead.
However, for us, it doesn't matter how the European chip market develops, what matters is whether this new EU regulation is very targeted.
This is because many industry analysts believe that the new regulations were made for Chinese companies. On closer inspection, it is not surprising that they made such an analysis and **. On the one hand, many Chinese companies have made it clear that they are unlikely to give up the European market in any case. On the other hand, before the rise of the automotive market, the EU was not very friendly to Chinese companies. Today, the EU's investment review process is similar to that of the US.
At the same time, the United States censored the investments of Chinese companies and did not allow them to open factories.
The question then arises: Will the EU follow the US lead and try to block investment by Chinese companies?
If this is the case, the EU could face even more dilemmas. First of all, the EU cannot avoid our position: in the EU Compensation Investigation Act, we have made it clear that equivalent countermeasures are a last resort. If Chinese companies are explicitly exempted again this time, it may be a breakthrough for many European companies exporting to the Chinese mainland market.
In addition, the structure of the semiconductor industry is global, so much so that the United States has passed a lot of laws to subsidize chips, and in fact, many things in the structure of the chip industry in the United States have not been eliminated. For example, they claim to have reduced their dependence on TSMC's local **, but after TSMC set up a factory in the United States, it returned to the critical part of assembly, and this is a deviation that they have never resolved.
At the moment, the lead in chip production itself is not large, so different strategies need to be found to achieve self-sufficiency in a short period of time. In addition, the scale of chip production cannot cope with the shortage. The EU cannot benefit from this problem because basically all companies are targeted. This is because the regulation itself does not fit into the current state of development of chips in the EU.
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