Mediaroom

• Shortage of nodes particularly used in automotive can continue beyond 2025
• Automotive demand for chips likely to increase threefold until 2030
• Continued uncertainty about the commitment of public authorities and framework conditions for investment is a concern

Brussels – E-mobility, automated, and connected driving solutions are leading to more automotive demand for chips. Automotive will be good for 14% of global demand for chips, up from 8% now, according to a recent study commissioned by VDA.

As a response to the global semiconductor shortage, one year ago the European Commission published a legislative proposal for a Chips Act, with the aim of boosting EU production of semiconductors and addressing future supply chain crises. The European Parliament’s final vote on this regulation will be next week.

“A late adoption of the Chips Act could become a true bottleneck. Industry is investing heavily in electrification and digitalisation of vehicles. Without a framework that provides certainty for investment in the supply chain of semiconductors, supply constraints will continue slowing down the transformation”, says CLEPA’s Secretary General Benjamin Krieger.

EU automotive suppliers call upon the European Commission, Parliament and Council to prioritise the adoption of the EU Chips Act and ensure trilogue negotiations can start as quickly as possible. Further, the European Commission and Member States should coordinate to ensure sufficient funds are mobilised, as was done in regions such as the US and Asia.

Further, continued ambiguity about the commitment of public authorities and framework conditions for investment is a major disadvantage for EU industry. Despite significant investment announcements over the previous months, investment in the EU semiconductor industry remains up to four times lower than in the US for the period until 2025.

Reflecting on key elements of the Chips Act, CLEPA has published a statement with more information on the aspects that need to be taken into consideration for a successful implementation of this regulation.