[To Eurosmart members only]

EU and US want to avoid a subsidy race on chips

A meeting of the EU-US Trade and Technology Council will take place next week on 29 September. According to a draft document, the EU and the US are working together to avoid entering a subsidy race on chips. Both sides of the Atlantic are currently undertaking initiatives to strengthen this strategic sector and reduce dependencies. Some fear this might lead to a subsidy race and crowd out private investments.

At the next meeting, the EU and the US are hence expected to present a partnership to promote investment, transparency, and collaboration in the chip sector. In addition, the EU and the US would jointly design and implement export controls.