US, EU deepen alliance to boost ‘underpin’ of global economies: semiconductors

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US-EU relations with Japan suggest an increased effort to distance itself from China

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The US and European Union on Wednesday pledged to deepen their alliance to advance common priorities such as artificial intelligence, trade challenges and the “underpin” for global economies: semiconductors.

“Semiconductors are the physical basis for the integrated circuits that are essential to modern life and underpin our economies,” the US-EU Trade and Technology Council said in a joint statement. “As such, semiconductors power nearly every sector of the economy, including energy, healthcare, agriculture, consumer electronics, manufacturing, defense and transportation.”

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The council said the coronavirus pandemic highlighted the need to enhance stable and reliable supply chains for the production of semiconductors.

Chinese flashlight, generator switched on amid power cuts

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Chip shortages began under the Trump administration, when the trade war with China affected supply chains. But chip shortages were compounded by increased demand for electronics on everything from laptops to home health care during the pandemic.

“We recognize that the semiconductor supply chain, from raw materials, design and manufacturing, to assembly, testing and incorporation into final products, is extremely complex and geographically spread,” the council said. “The United States and the European Union have some significant related strengths as well as ongoing, significant interdependence and common external dependencies.”

Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo traveled to Pittsburgh to meet with European Commission Executive Vice Presidents Valdis Dombrowski and Margrethe Vestager to strengthen ties as relations between the US and Europe become strained.

EU Internal Market Commissioner Thierry Breton warning Last week there has been growing sentiment that the US-trans Atlantic relationship is “broken” and suggested it was time to “stop and reset” the partnership.

Breton’s remarks come after France was sidelined in a US-UK deal with Australia, which effectively canceled an existing submarine contract with the EU nation.

The commissioner was not present for Wednesday’s council meeting in Pittsburgh, but his social media suggested Breton was working to increase the EU’s reach into the global chip market.

On Wednesday Breton announced on Twitter that he was facilitating an EU-Japan “cooperation” in Japan and laying “the basis for our upcoming EU Chip Act”.

America is also considering to strengthen it in the same way. alliance with Japan and promotes semiconductor production.

Joint US-EU interest in Japan could signal increased pressure from China to distance itself.

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The council promised to “stand together” against “unfair treatment of state-owned enterprises”, although the statement did not directly identify China.

“We intend to focus on reducing existing strategic dependencies in the supply chain, particularly through increased supply chain diversification and investment,” the council said. Respecting our respective security of supply.”


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