The issue, the way I see it, is that using subsidies to pull chip production requires adding some sort of exemption to existing rules.
But then the question becomes if they will be European subsidies or national ones. European subsidies mean a bigger EU budget and political conflict over which country will reap the benefits, nobody will accept Bulgaria or Ireland getting the plant due to their low taxes while France, Italy and Germany pay the bill. Buy if Germany gets the plant it looks like EU is paying out to it’s richest member.
If it’s national subsidies, then most of Europe has nothing to gain because they can’t outbid France and Germany.
Stand up to China and make sure they don’t invade Taiwan. Then we don’t have to worry about enemies cutting off our chips.
Build factories with public founds , give it to private investment companies who in turn sell it to private producers. . . Capitalism working as intended…..
European fabs certainly have the ability to put new investment to good use, and the automotive sector would benefit enormously from a quick increase in supply of stuff we already know how to make.
4 comments
The issue, the way I see it, is that using subsidies to pull chip production requires adding some sort of exemption to existing rules.
But then the question becomes if they will be European subsidies or national ones. European subsidies mean a bigger EU budget and political conflict over which country will reap the benefits, nobody will accept Bulgaria or Ireland getting the plant due to their low taxes while France, Italy and Germany pay the bill. Buy if Germany gets the plant it looks like EU is paying out to it’s richest member.
If it’s national subsidies, then most of Europe has nothing to gain because they can’t outbid France and Germany.
Stand up to China and make sure they don’t invade Taiwan. Then we don’t have to worry about enemies cutting off our chips.
Build factories with public founds , give it to private investment companies who in turn sell it to private producers. . . Capitalism working as intended…..
European fabs certainly have the ability to put new investment to good use, and the automotive sector would benefit enormously from a quick increase in supply of stuff we already know how to make.