EU Seeks Centralized Chip Buying to Reduce Dependence on US and Asia
The inside of a computer
MOSCOW (Sputnik) — The European Commission wants to strengthen its control over the EU semiconductor supply chain and gain the power to force chipmakers to terminate existing contracts, the Financial Times newspaper reported, citing a draft law. The Commission will have the authority to «force semiconductor manufacturers to prioritise orders for crisis-critical products, overriding existing contracts,» the draft read. The draft is expected to be published next week, the report said on Thursday, adding that Brussels will be able to impose fines of up to 300,000 euros ($349,500) on semiconductor manufacturers that fail to provide information about their production capacity upon request. Brussels will also be able to introduce joint procurement to «strengthen negotiating power and prevent competition between EU countries for limited supplies,» the report noted. According to the newspaper, in such a scenario, the European Commission would act as a central buyer, uniting several EU countries, as it did with the procurement of vaccines during the COVID-19 pandemic. The draft also reportedly noted that the EU is «almost entirely dependent on the US and Asia» for semiconductor supplies. Last week, the European Commission proposed exempting Chinese semiconductor manufacturer Yangzhou Yangjie Electronic from anti-Russian sanctions for nine months. The decision was lobbied for by European automakers, who warned of looming chaos in their supply chains.
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