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EU ‘off the pace’ in global microchip race: auditors

TDT | Brussels

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The EU is lagging behind in the global race to produce microchips, and looks set to fall well short of its target to claim a fifth of the world’s market, the bloc’s auditors said Monday.

“The EU urgently needs a reality check in its strategy for the microchips sector,” said Annemie Turtelboom, a member of the European Court of Auditors.

“This is a fast-moving field, with intense geopolitical competition, and we are currently far off the pace needed to meet our ambitions.”

The disappointing outlook for the European Union comes despite Brussels passing a flagship Chips Act in 2023 aimed at bolstering production in the bloc.

Turtelboom said that at current growth rates, the EU was “nowhere close” to reaching its target of having a 20% share of the global microchip market by 2030.