1. Home
  2. Studies
  3. Subsidizing Semiconductor Production for a Strategically Autonomous European Union?
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice External Publication 21. June 2022 Subsidizing Semiconductor Production for a Strategically Autonomous European Union?

The COVID-19 pandemic has highlighted the vulnerability of international supply chains and the dependency of the economy of the European Union (EU) on goods from non-EU countries. The scarcity of microchips that has persisted since the COVID lockdowns has laid bare the dependency of the EU on overseas producers of this essential high-tech product.

To Download
Subsidizing Semiconductor Production for a Strategically Autonomous European Union?
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice External Publication 21. June 2022

Subsidizing Semiconductor Production for a Strategically Autonomous European Union?

To Download Quote

Copy the information

The link was added to your clipboard!

Share this article:

or copy the following link:

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

The COVID-19 pandemic has highlighted the vulnerability of international supply chains and the dependency of the economy of the European Union (EU) on goods from non-EU countries. The scarcity of microchips that has persisted since the COVID lockdowns has laid bare the dependency of the EU on overseas producers of this essential high-tech product.

The Russian attack on Ukraine has magnified this issue due to the close economic ties and geographic proximity between the EU and both countries. While ensuring production capability in a crisis is primarily the task of enterprises themselves, a supply disruption can also have tremendous consequences for an entire economy and therefore justify state interventions. The EU has reacted to these circumstances with its concept of Open Strategic Autonomy and the initiative for an EU Chips Act. This concept of autonomy should entail the incorporation of the benefits of an open economy and the aspiration of the EU to co-determine the global framework in a favourable way. But it also calls for more market interventions. However, these require an economic and political justification and close monitoring. The measures should be discussed with international partners in order to prevent retaliation measures or international subsidy races.

To Download
Subsidizing Semiconductor Production for a Strategically Autonomous European Union?
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice External Publication 21. June 2022

Subsidizing Semiconductor Production for a Strategically Autonomous European Union?

To Download Quote

Copy the information

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
AIECE General Report Autumn 2022 - Part I
Michael Grömling / Michelle Koenen / Gero Kunath / Thomas Obst / Sandra Parthie IW-Report No. 65 5. December 2022

AIECE General Report Autumn 2022 - Part I

Private households, companies and governments in Europe are facing enormous challenges. First, far-reach-ing transformations in economic life are on the horizon for the current decade and beyond. Demographic developments are exacerbating the shortages of ...

IW

Read the article
Sandra Parthie Event 21. November 2022

panel discussion: Challenging times for the US and EU - Where are the economic and monetary policies headed?

The Russian war of aggression on Ukraine triggered massive price increases. But even before that, there were high inflation risks due to the Corona pandemic and creeping deglobalization. How should governments and central banks respond now?

IW

More about this topic

Content element with id 8880 Content element with id 9713