Apr. 19, 2023 /SemiMedia/ -- According to Reuters, the European Union yesterday agreed a 43 billion euro ($47 billion) semiconductor industry plan in an effort to catch up with the U.S. and Asia.

The EU Chips Act, first proposed by the European Commission last year, aims to double EU countries' share of global chip production to 20% by 2030, and has pledged to provide sufficient funding.

The report pointed out that since the European chip subsidy plan was announced last year, the EU has attracted more than 100 billion euros in public and private investment.

"We need chips to power digital and green transformation or healthcare systems," said European Commission Vice President Margrethe Vestager.

However, analysts believe that even with greater investment, the EU may still struggle to close the gap with rivals.