Part of: Prelims and GS-II International Relations and GS-III Economy
Context: TheEuropean Union has planned to unveil the EU Chips Act that will mobilise more than €43 billion ($49.1 billion) of public and private investments and enable the EU to reach its ambition to double its current market share of semiconductors to 20% in 2030.
Key takeaways
Getting to 20% of the global market share of chips production would mean basically quadrupling the industry’s efforts.
The plan also hopes to limit the bloc’s dependence on Asia for semiconductor which is a key component used in electric cars and smartphones.
Significance: The production of chips has become a strategic priority in Europe as well as the United States, after the shock of the pandemic choked off supply, bringing factories to a standstill and emptying stores of products.
The manufacturing of semiconductors overwhelmingly takes place in Taiwan, China and South Korea.
Do You Know?
It is estimated that the semiconductor industry is growing fast and can reach $1 trillion dollar in this decade. India can grow fast and reach $64 billion by 2026 from $27 billion today.
Mobiles, wearables, IT and industrial components are the leading segments in the Indian semiconductor industry contributing around 80% of the revenues in 2021. The mobile and wearables segment is valued at $13.8 billion and is expected to reach $31.5 billion in 2026
