The European Union (EU) plans to evaluate the risks involved in using mature Chinese chips in industries, which is also a concern for the US. As per a Bloomberg report, the EU is contemplating analyzing the level of integration of mature Chinese chips into its technology network. This initiative reflects the US administration’s move to assess the risks posed by non-advanced chips crucial to various industries, including military, infrastructure, and electric vehicles.
The European Commission’s (EC) step is the first step towards creating joint measures with the US, including imposing restrictions on China as chips mature and become an essential component of the global economy. The increased Chinese investment in building factories to produce chips has raised concerns on both sides of the Atlantic that Chinese companies will strengthen their position in the market and have a severe impact on the West, as witnessed in the solar energy and steel sectors.
The EU and the US will continue to collect and exchange non-confidential information and market data on non-market policies and practices and commit to consulting each other on planned actions. This information is in a draft document scheduled to be presented at the EU-US Trade and Technology Council (TTC) next month in Belgium.
The TTC will discuss holding back China’s chip maturity, which is one of the central topics at the upcoming event. It will also deliberate on expanding joint arrangements on early warning mechanisms related to supply chain disruptions and exchange information on government support for the semiconductor sector. Countries are expected to adopt a risk-based approach to artificial intelligence (AI) and develop criteria to evaluate general AI models. They will also jointly agree on principles and standards to research and develop 6G wireless communication systems while cooperating to standardize new technologies, including biotechnology.