The EU plans to introduce a "chip bill" to increase EU chip production capacity from 10 per cent of the world at present to 20 per cent by 2030.

European Commission President von Delaine announced the plan on the 20th at a videoconference of the 2022 World Economic Forum, which will be introduced in February this year.

Mr von der Lane said the chip bill would help the EU improve its chip R & D and innovation capabilities, pave the way for public support for EU-pioneered production facilities, improve its ability to respond to shortages and crises, and support small and innovative companies.The EU aims to produce 20% of the world's chips by 2030. At present, the market expects that the global demand for chips will double by then, which means that the chip production capacity of the European Union should quadruple on the existing basis.

Market analysts believe that the EU's Chip Act may allow more public funds for the research and production of cutting-edge chips.The ultimate goal of the EU is to produce state-of-the-art 2nm chips.

In the 1990s, the EU accounted for more than 40 per cent of the global chip market, but after several rounds of global industrial iterations, that proportion has now fallen to about 10 per cent.

The European Union is a world leader in chip research and production equipment, but lags far behind in chip production. The global chip shortage that began last year has seriously affected EU industries, highlighting the EU's over-reliance on foreign chip suppliers.

The world's leading semiconductor manufacturers are now looking at chip expansion plans in Europe. Taiwan Semiconductor Manufacturing Co Ltd had previously said he would consider building his first European semiconductor factory in Germany. Intel Corp also said he was willing to set up a semiconductor factory in the European Union, but hoped to receive an European government subsidy of 8 billion euros (nearly $10 billion).

The EU government's efforts to attract foreign chipmakers have unnerved local companies. To this end, the European Union is discussing a plan to establish an European semiconductor union, thus binding the interests of local European companies. The semiconductor alliance, which includes Italian Semiconductor, NXP, Infineon and ASML, aims to reduce dependence on foreign chipmakers in the face of tight global supply chains.

In addition to the European Union, the United States is pushing for a similar domestic chip manufacturing bill.

House Speaker Nancy Pelosi said on Thursday that the House of Representatives is close to completing legislation aimed at strengthening the response of the US semiconductor industry to overseas competition, and that the "chip bill" could be merged with a similar bill passed by the Senate to be passed by Congress.

The bill includes $39 billion in production and R & D incentives and $10.5 billion in implementation plans, including the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program and other R & D programs, Reuters reported. The United States currently accounts for 12% of the world's semiconductor production, down from 37% in 1990.

But progress on the bill has been stagnant since it was approved by the Senate in June last year, although the House of Representatives approved a bill with similar content.

John John Cornyn, Republican senator from Texas and sponsor of the bill, said there was an incentive to incorporate the bill into a broader government spending programme, and lawmakers were trying to finish it as soon as next month.