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China invests billions in chip funds

Computer chips are not just about a lot of money – they are also about power. The Chinese government is now pumping billions into domestic production. This could further fuel the trade dispute with the USA.

China wants to strengthen its own chip industry with the equivalent of almost 44 billion euros. This is the country's largest semiconductor investment fund to date. The People's Republic has already set up two billion-euro funds to promote chips.

There is a lot at stake when it comes to the important computer chips. Not just a lot of money, but also power – because whoever has the fastest chips has that. The semiconductor industry is at the heart of the competition between the USA and China, everyone wants to be ahead in this tech sector. The USA wants to slow down China and has further restricted chip exports.

Chips are indispensable in many areas today. Semiconductors are needed in wind turbines, smartphones, washing machines and cars, but also in the weapons industry – which is why the USA and China are also concerned with military superiority.

Europe hopes to catch up

In recent years, chip production has been increasingly promoted in many places around the world. This is also the case in the EU – Europe should catch up – that is the political will. The pandemic and the chip supply bottlenecks in particular have shown how dependent Europe is here too.

The race to catch up will be a long one, not only because China is now pouring even more money into its own chip industry, but also because Europe must become more resilient through its own efforts.

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