Officials are concerned subsidized Chinese firms are going after the bloc’s champions.
BRUSSELS — The European Union is eyeing action against Chinese rivals to protect one of Europe's remaining tech successes: chips for its mighty car industry. The European Commission has been asking European semiconductor producers whether and how Chinese rivals might be undermining them, according to a questionnaire seen by POLITICO.
showed that German Infineon, Dutch NXP and French-Italian STMicro are three of the five largest suppliers in the car chip market. The EU's draft survey asks leading manufacturers of low-tech chips in Europe whether an"alternative product" or"product family" from a Chinese competitor exists and what the price difference is, in percentages, between the European chips and Chinese competitors. The European Commission has been asking European semiconductor producers whether and how Chinese rivals might be undermining them. | Jens Schlueter/Getty Images The survey also suggests that the EU executive is considering supporting extra chip-making capacity in Europe. It asks whether European producers would be open to a"common wafer fabrication facility" or a"common packaging facility." United States and EU officials have been warning of potentially unfair Chinese subsidies for legacy chips. The U.S. already launched a "We know there's a massive subsidization of that industry on behalf of the Chinese government, which could lead to huge market distortion," U.S. Commerce Secretary Gina Raimondo said in April on the margins of a high-level transatlantic Trade and Technology Council meeting between EU and U.S. officials.The Commission confirmed in a statement that it is"investigating potential excessive dependencies" in the area of legacy chips and is carrying out"a targeted consultation" of the industry.The chips industry, however, fears European action against Chinese companies could distort chip supply chains."Europe cannot even meet half of its own demand. So we need it from elsewhere, and factories are currently being built in China," he said, adding that German cars, too, rely on low-tech microchips.
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