The EU Parliament’s Industry and Energy Committee on Tuesday approved new legislation to enhance the regional block’s access to semiconductors. The EU Chips Act would encourage “chip diplomacy” between Europe and Taiwan, one of the largest chip manufacturers in the world.
Global supply chains have been plagued by a semiconductor shortage since the beginning of the COVID-19 pandemic. Earlier this month, car manufacturer Volvo announced its factory in Ghent, Belgium would shut down for a week due to insufficient chip supply. The EU accounts for 10% of the global microchips supply.
Article 7 of the act would see the EU executive establish a special board to oversee relations with major microchip producing countries. The article specifically names Taiwan as one of these strategic partners, alongside the United States, Japan, and South Korea.
The act would also compel the EU to create new diplomatic mechanisms to deal with microchips, including by creating agreements over trade and investment. These diplomatic measures are meant to secure Europe’s chip supply.
The EU Chips Act still needs to pass in the European Parliament and be approved by ministers from each member state before becoming law.
