The European Union (EU) and the United States (U.S.) have reportedly announced plans to collaborate and prevent a subsidy race for boosting the production of scarce semiconductor chips.
The development will be unveiled at the second U.S.-EU TTC (Trade and Technology Council) meeting taking place in Paris.
At an inauguration conference in Pittsburgh a year ago, the TTC promised to extend transatlantic cooperation to reduce the non-market trade practices of China, reinforce chip supply chains, and take a comprehensive approach to regulate major technology firms.
According to a credible source, both parties will announce a transatlantic way to make investments in semiconductors to ensure a secured supply. The source added that the EU and the U.S. aim to foster chip investment in a coordinated manner and avert any sort of subsidy race.
Notably, the electronic and automotive industries are facing disruptions in their production due to a continuing industry-wide chip shortage. This has forced some companies to downscale production.
As part of the meeting, there will be an announcement of an early warning system. This system pinpoints and acknowledges disruptions in the semiconductor supply chain.
US Trade Representative Katherine Tai, Secretary of State Antony Blinken, and Commerce Department Secretary Gina Raimondo will lead the meeting. EU antitrust chief Margrethe Vestager and EU trade chief Valdis Dombrovskis will also take part in the meeting.
Furthermore, the Council will announce a new scheme aimed to tackle online disinformation like false claims from Russia related to its attack on Ukraine.
Meanwhile, Commerce Department Secretary Gina Raimondo stated that the Chinese administration has opposed an effort in Congress to augment semiconductor manufacturing in the U.S. as it will offer a competitive advantage.
But the U.S. legislation, that would provide funding of USD 52 billion for output expansion, is still not sanctioned in Congress.
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