The European Association of Automotive Suppliers (CLEPA), which represents over 3,000 companies supplying components and technologies for mobility, has released a statement calling 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. It added that the European Commission and Member States should coordinate to ensure sufficient funds are mobilised, as it has been done in regions such as the US and Asia.
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.
The association pointed out that:
- 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
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. Since it was published on 8 February 2022, the proposal has been moving through the EU legislative process. On 24 January 2023, members of the European Parliament (MEPs) adopted two draft bills: one on the “Chips Act” that aims to bolster technological capacity and innovation in the EU Chips ecosystem and a second one on the Chips Joint Undertaking to increase investments for developing this type of European ecosystem. This means negotiations with EU governments regarding how to finance the proposals can begin.
“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.
“Continued uncertainty about the commitment of public authorities and framework conditions for investment is a significant disadvantage for EU industry,” CLEPA‘s statement said. “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 . Policymakers should focus the inter-institutional negotiations on improving the EU Chips Act proposal in a way that secures private investment and reflects the close interdependence of the EU’s automotive and semiconductor supply chains. A broad approach to innovation requirements for public investment and lesslegal uncertainty about potential supply chain interventions will make the EU Chips Act a tool to strengthen the competitiveness of EU industry.”
