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Dutch warn against global decoupling in European Chips Act

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BRUSSELS, Oct 13 (Reuters) – The European Union shouldn’t decouple from the global semiconductor provide chain in its efforts to create a European chipmaking ecosystem and be self-sufficient, the Netherlands warned this week.

Global provide chains, a enterprise mannequin that has confirmed common for the previous 30 years, have been disrupted by the COVID-19 pandemic, main governments world wide to think about bringing manufacturing operations nearer to residence.

The European Commission, the EU govt, in September proposed a European Chips Act overlaying analysis and manufacturing capability, prompted by the chip scarcity that has disrupted the auto trade, medical gadgets makers and telecoms suppliers.

The EU depends on Asian-made chips and has a diminished share in the availability chain, from design to manufacturing capability.

Decoupling from the global provide chain could be a mistake, the Netherlands mentioned in a paper printed on the federal government web site, pointing to the success of Dutch corporations ASML (ASML.AS), the world’s main producer of superior chipmaking instruments, and chipmakers NXP (NXPI.O) and Besi (BESI.AS).

The European Chips Act “requires acknowledgement that decoupling of the global semiconductor value chain is an illusion,” the paper mentioned.

“European interests are best served by an open ecosystem that remains focused on attracting investment, accelerating innovation and adding market value. Diversification and mutual interdependence promote resilience and prevent one-sided dependencies.”

The Dutch additionally proposed the creation of devices to forestall undesirable key strategic takeovers of chipmakers.

The Commission’s 2022 work programme foresees the Chips Act adopted in the third quarter of subsequent 12 months.

Additional reporting by Francesco Guarascio; Editing by Sandra Maler

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