EU chip plan would cost €500bn, says NXP CEO

Author: EIS Release Date: Oct 11, 2022

The EU will need ten times more than its budget if it wants to get 20% of the world chip market by 2030, Kurt Sievers, CEO of NXP (pictured), told the Globalfoundries’ Technical Summit in Dresden.

 

The EU has put forward a $52 billion Chips Act to hike European market share from 10% to 20%.

 

“We have calculated that we would need €500 billion investment in Europe to reach the 20% market share goal formulated in the EU Chips Act,” said Sievers , “reaching 20% world market share coming from 10% requires tripling or quadrupling our capacities.”

 

In the US the $250 billion Chips and Science Acts are paying 25% of the cost of new fabs. In Germany the authorities have agreed to 40% of the $17 billion cost of a pair of Intel fabs.

 

The EU has  not revealed how it intends to fund the €52 billion Chips Act let alone €500 billion. Nor has it said how money will be allotted.

 

ST, NXP and Infineon, Europe’s big three chip companies have indicated, once again, that they don’t want to get involved.