LONDON, May 29. /TASS/. The European Union is preparing a bill that would give it emergency powers to intervene in the semiconductor supply chains of its member countries, the Financial Times (FT) newspaper said.
Brussels is considering the possibility of joint microchip procurements, a move intended to strengthen its negotiating position and avoid competition between EU countries amid limited supply, according to the draft document seen by the publication. Such work comes amid tensions between the US and China and growing concerns that semiconductors could become a lever of economic coercion, especially given Europe’s heavy reliance on microchips from Taiwan, the article said.
The bill scheduled to be published next week will grant the European Commission (EC) broad powers in the event of a semiconductor shortage that threatens the supply of weapons, medical equipment, digital infrastructure, and other key goods. Companies that fail to disclose their production capacity and suppliers could be fined up to 300,000 euros.
The Chips Act is part of a broader EU strategy to reduce dependence on American technology by supporting European alternatives in sectors such as semiconductors, cloud computing, and artificial intelligence. In the document, Brussels acknowledges that the European community is almost entirely dependent on the US and Asia for the most advanced microchips, the FT said. The EU produces less than 10% of global semiconductors, and Brussels’ plans to double its share by 2030 are behind schedule.