On the eve of the EU-Schu summit scheduled for April, the European Union is contemplating officially assessing the extent to which European companies utilize outdated or less advanced chips from China. According to a draft of the working statement obtained by Bloomberg, these actions aim to evaluate the risks to national security and global supply chains posed by reliance on these semiconductors. While not cutting-edge, these chips are crucial for military applications, as well as industries like electric vehicle production and infrastructure.

This EU initiative could mark the beginning of coordinated efforts with the United States, potentially leading to the implementation of restrictions or other measures in response. The US is worried that increasing Chinese investments in this sector could result in Asian companies dominating the market, a scenario similar to what has occurred in the solar energy and steel industries. These so-called obsolete chips are indispensable for the global economy. China is actively investing in building factories to ramp up production, raising concerns on both sides of the Atlantic about potential market imbalances or excessive reliance on Chinese supply chains.

During the upcoming EU Schu summit, discussions will cover various topics beyond semiconductors, including enhanced collaboration in early warning mechanisms for supply chain violations, information sharing on state support for the semiconductor sector, and joint development of principles and standards for research in the realms of wireless 6G and artificial intelligence. Additionally, the summit will address cooperation on biotechnology development and ensuring information integrity online.

/Reports, release notes, official announcements.