43,000 million euros to end the semiconductor crisis: this is Europe’s solution

The European Union has announced a 43 billion euro plan to overcome its dependence on Asian manufacturers, as governments and businesses around the world grapple with a global supply chain crisis. supply that could last throughout the year.

Consumers have to wait months to buy cars, dishwashers and other durables due to chip shortages, so the European bloc’s plan marks one of the most significant advances so far as a result of the crisis .

The president of the European Commission, Ursula von der Leyen, declared on Tuesday that: “Chips are at the center of the global technological race. Of course, they are also the basis of our modern economiess”.

Von der Leyen explained that a chip law would link research, design and testing and coordinate national and EU investments. The plan brings together public and private funds and allows the granting of state aid to launch the enormous investments.

The EU measure is a reflection of initiatives that are taking place around the world. For example, Joe Biden has promised to invest $52 billion in a domestic chip production sector to ensure a steady supply in the United States.

Supply chain managers are experts in adapting to unexpected natural catastrophes, such as typhoons and fires (something very common in the Asian continent), but the consequences of the pandemic have been impossible to draw.

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The semiconductor crisis is far from over: 2022 may be its worst year

Shifts in geopolitics and climate change are adding to the mix and are leading companies and governments to rethink the way they do business.

In addition to delays in products and materials key, companies continue to be beset by labor shortages thanks to ongoing virus outbreaks and lockouts, as well as inflation not seen for decades, experts explain.

With this scenario, if by the end of the year we manage to get out of the crisis and the factories return to normal operation, we could be satisfied. But everything indicates that there are still years of scarcity.