Europe's focus on chip advantage areas is the right thing to do!

At the end of last month, when French President Emmanuel Macron met with Intel CEO Pat Gelsinger at a 17th century palace on the outskirts of Paris, the most important topic on their agenda. The EU is seeking to enter the top alliance of global semiconductor manufacturing, and they have set themselves a daunting goal of doubling their global chip market share by 2030.

EU Internal Market Commissioner Thierry Breton asked, "Shouldn't Europe do this if economies including China, South Korea, Taiwan, and the United States are increasing investment to expand their semiconductor industry? " However, the question the EU faces as it prepares to start this business is whether it will ultimately waste a lot of public funds chasing geopolitical ambitions that may not be supported by industrial and market logic.

Currently, there are few manufacturing facilities (known as wafer fabs) in Europe that can produce nodes smaller than 22 nanometers. Intel's production in Ireland is an exception as it produces products that include 14 nanometer chips, and the company is seeking to introduce 7-nanometer technology into the factory.

When manufacturing the most advanced chips for high-end computers, smartphones, and other devices, most domestic industries on the European continent attempt not to compete with large companies in Asia and the United States. On the contrary, EU market leaders such as Infineon from Germany, NXP from the Netherlands, and STMicroelectronics from France focus on providing equipment for industries such as automotive, aerospace, and industrial automation.

For EU officials, the current supply shortage that troubles the semiconductor industry and hinders the production of key automotive industries in the EU emphasizes the necessity of taking corresponding actions. Considering Taiwan's location, the risk of relying so heavily on Taiwan's semiconductor production is also significant.

Supporters of the current model believe that given the global nature of the semiconductor supply chain, it is correct for Europe to focus on advantageous areas rather than seeking to compete with companies such as TSMC.