Is Europe's current massive subsidy to European semiconductor companies aimed at competing with the United States?

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Is Europe's current massive subsidy to European semiconductor companies aimed at competing with the United States?

In fact, in the short term, the European #semiconductor industry is not enough to truly compete with the United States. However, in the long run, with the European Union's large-scale subsidies and support for European semiconductor companies, competition in the semiconductor field between Europe and the United States can be said to be inevitable. Because, semiconductor companies are different from traditional companies.

 

Usually, enterprises with advanced #technology will form a technological advantage over the entire industry, thereby creating a "winner takes all" situation and earning most of the industry's profits. The "winners" in the industry will use most of the profits they earn to reinvest in the new generation of technology research and development, forming a technology generation gap, making the gap between companies in the industry wider and wider.

 

In the field of semiconductors, European semiconductor companies occupy a dominant position in the upstream of the chip industry. The three major semiconductor companies InfineonNXP and STMicroelectronics are the three giants in the upstream of the European chip industry chain. Zeiss of Germany and ASML of the Netherlands , Belgium's PFAS (perfluorinated and polyfluoroalkyl substances) production base, etc., firmly allow Europe to occupy the upper reaches of the chip industry. However, it also makes Europe lag behind Asian countries and the United States in manufacturing, packaging and other technologies.

 

At the beginning of the 21st century, Europe accounted for 20% of the world semiconductor market, but in recent years it has dropped significantly to 8%. Even with massive subsidies, Europe's semiconductor industry will not be able to compete with the United States in the short term.

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