The world crisis of microchiphas been affecting the automotive market for some time now: the lack of microcircuits has very important repercussions on the global production of cars, in an already difficult period for the sector due to the Covid-19 pandemic.
To face this difficulty, Europe is ready to take the field and help the world of motoring. In consideration of the shortage of chips and semiconductors, and of their relevance and dependence on the supply of a limited number of companies in a geopolitical context, the European Union is preparing to approve subsidies that can fill potential funding gaps.
This was announced by theEU executive through the revision of the European rules on state aid, in such a way as to make them more suitable for this historical moment, characterized by energy and technological transition of cars.
The aid ofEuropean Union, according to what is stated in the document published by the executive, they would be subject to solid safeguards in terms of competition. The EU specifies that “it will continue to support the efforts of European states to develop important projects of common interest that overcome market failures by enabling pioneering innovations and infrastructure investments in key green and digital priorities, namely hydrogen, cloud, health and microelectronics. “.
The European Union will continue to exercise control over mergers to allow companies to reach a larger scale, thus ensuring that markets remain competitive and supply chains diversified.
The aid from the European Community they arrive at a time when the production crisis is causing huge losses and a consequent contraction of the market. Despite their negligible size and cost, microchips are indispensable elements for controlling and operating various aspects of a car.
Anything that involves any electrical circuit, or an electrical mechanism, needs the presence of microchips. Cars were once built differently and different mechanisms did not need technology: over time, however, these mechanisms have been transformed, leading many functions to depend on microchips.
The great difficulty in finding raw materials, caused by the pandemic of Covid-19, has also affected microchips, creating enormous damage to the entire automotive sector. From this point of view, Europe is ready to help individual states with subsidies that can cope with the hardships created by the crisis.
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