Europe’s Plan to Invest in Semiconductors

Europe is pouring billions in investment for semiconductors over the next decade. This video touches on why Europe is putting so much money into microchips, both from a geopolitical and technological standpoint, and it explains how that money may be used.
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[@lucimicle5657]

When the pandemic started and we didn't have masks I was thinking that we have a problem with strategic industries being outsorced.

[@pablolostum]

Politicians sold it as a globalisation perk when in reality it's been detrimental to Europe's potential

[@ABC-ABC1234]

Did you just refer to mask production as critical?! LOL Turkey can even produce those at a whim! Germany, Belgium, Netherlands could have easily rerouted producers to increase production.

[@Sir_Bucket]

@@ABC-ABC1234 no? It takes infrastuctures to produce those especially in such quantities. Just before the pandemic (I don't mean before the virus was discovered), all the stocks were bought by China, creating a shortage. Europe didn't just need to produce masks, they needed a lot of them fast.

[@ABC-ABC1234]

@@Sir_Bucket Infrastructure Turkey has btw. You may not know much about Turkey, but unlike their arab neighbors they actually have an industry... I saw Turkish factories swapping over to mask production overnight, just saying. Production of masks isn't anything complicated.

[@elessal]

ironic, given that masks were not useful and just a simbol of disinformation and histeria.

[@theondono]

EE in the EU here, I’ve been contacted by some of the ventures that have received this massive funding. My honest impression is that they have no clue of what to do with the money, so I don’t have many hopes of this going well

[@giacomolatorraca2149]

Great work man keep it up keep it coming

[@hoogyoutube]

Thanks Giacomo, I will :)

[@campanudenis1970]

I just comment to help the algorithm. Please do not stop. You make such informative and high quality videos.

[@hoogyoutube]

:) I’m not stopping anytime soon

[@aitor9185]

As much as I would love for this strategies to succeed the Semiconductor industry is brutal and Europe may need way more than "150B€" to actually get somewhere. The Asianometry KZbin channel has very interesting analysis on the impacts and challenges of Semiconductor manufacturing. From the environmental concerns and massive water usage, to the brutal economics behind it. I hope the European money is invested in many different parts of the value chain and not wasted in trying to directly compete with the established giants like TSMC. EDIT: spelling

[@aniksamiurrahman6365]

I don't think they are gonna compete with TSMC, rather are inviting them. But still it seems too little, too late. Also, just building those chips isn't gonna cut it. What about investing to make high-tech companies that will do something with those chips? Also, Europe is a world leader in photonic and nuromorphic chip when it comes to research. But light years behind when comes to industrial production of them.

[@aitor9185]

@@aniksamiurrahman6365 You are right that with no one to buy those chips in Europe the whole production would be kinda pointless. Let's hope that some smart regulations are put in place to actually encourage a diverse ecosystem

[@happypt2929]

@@aniksamiurrahman6365 that does make sense but, getting chip production on European soil would be the biggest incentive for companies(that would use them) to develop in European soil. There would be no need to import chips and the investment to create and develop these companies would be easier to get.

[@duret-robertlouis2973]

It is spent on different chains of the semi-conductor sector. They are also funding development of IP (the designs that are manufactured on semi-conductor) through the EUHPC initiative for instance, with the aim of designing the chips of the future exascale supercomputors of Europe

[@vinniechan]

@@happypt2929 I think the issue is Europe has a significant car industry and they got freaked out if anything happens to their supply chain so they are going for independence and bring as much on shore as possible

[@vinniechan]

The statement that Europe needs strategic autonomy sounds like Europe is at Taiwan and Asia's mercy when it comes to chips but the reality is less clear cut Taiwan and Asia are good at the fabrication of chips, but the monopoly on the photolithographic machine that churns out the chips is held by Europe (ASL). Europe already occupies a not insignificant part in the value chain of chip manufacturing and now you are talking about moving downstream to grab a slice from other countries who make their money off it with subsidies.

[@lamebubblesflysohigh]

This is one of the most important thing the EU can do in this half of the century. Microchips are in everything these days. We need them for cars (huge employer in Europe and driver of GDP), weapons (another huge segment of the economy and important for defense), consumer electronics, food production, efficient fuel production, electricity production... absolutely everything. Microchip supply is more important for our economy than natural gas. If Russia cuts us off their gas we can always fire up mothballed coal power plants and burn coal to get us through 1 winter until we negotiate supplies from elsewhere but we are royally fucked without microchips.

[@ABC-ABC1234]

You clearly don't understand or underestimate the importance of natural gas and fossil fuels...

[@lamebubblesflysohigh]

@@ABC-ABC1234 you cant mine shit without microchips

[@khulhucthulhu9952]

I miss the word ASML Where do they figure in, seeing as they're the world's primary producer of chip producers?

[@sqtw]

Can’t wait for this channel to hit a million subscribers. This is high quality content.

[@MannFace51]

One of the best channels on KZbin, not enough channels talk European political/economic realities.

[@NargaKuruga]

Underrated channel, great content mate

[@jezusbloodie]

The more advanced chips part slots in neatly with the 6G that has started developement (bell nokia got the task last year, it aims at 100s gigabit data transfer in to start implementation in 10 years with an expect maximum penetration in 20. It will require some nextlevel signal processing chips, among other new tech), and the move towards edge computing that is expected to happen, for example the (recently announced in europe development 1st gen) microcontrollers with optimized neural network hardware (unfortunately they are still thousands of euros, but in 10 years these AI chips may very well become common place in stuff like prosthetics or wearable, let alone industrial automation on levels unseen before) I personally expect a movement in europe towards manufacturing (exascale) supercomputers (sub-) components within 5 to 10 years to start up too

[@shmookins]

I just found your channel and I love it. Cheers.

[@toomanyducks9524]

exceptionally well produced video

[@stanleymoss3877]

This high quality of content is incredible

[@fedethefico]

Your channel is a beacon of light! Thanks!

[@hoogyoutube]

Just an FYI, the script with all the sources can be found on the following link (you do have to subscribe to our newsletter, but this won't cost anything, and you'll be on track for getting more European content): www.romulus.website/europesplantoinvestinsemiconductors/

[@fedethefico]

The url is broken

[@giannisv.8312]

You deserve way more attention

[@ax0r]

I have been discovering some great content on yt lately, glad Ive found urs

[@joaquimbarbosa896]

The 2 main reasons why this is hard is because 1- Europe doesn't really have high tech manufacturing 2- Burocracy The second is easier to eleminate. Still, high tech industry is slowly but surely getting in the EU. Not enough for advanced semiconductor production to increase. Thats why I think some of that money should be spent on bringing back some kinds of industries that need those semiconductors

[@sirBrouwer]

ASML (the Netherlands) is pretty much high tech. They could very well build the chips themselves as they are the company that make the machinerie that is needed to build chips. we also have SAP (Germany), Siemens AG (Germany) CERN (France/Switzerland) ESA, (EU space program) Bosch GmbH (Germany), VW group (Germany) Philips (the Netherlands) EDF (France) most of them are often just not that visual

[@joaquimbarbosa896]

@@sirBrouwer ASML is a geeat company, but making tools and making the final piece is very different. Besides, it alone provides litle manufacturing CERN and ESA aren't companies and they don't have anything to do with manufacturing. EDF is an energy company, and again, makes litle to no manufacturing. Philips is not a high tech company, they admited that themselfs. VW group is also not a tech company. Siemens is a great company but again, its not a tech company. It has great business on machinery, tools, medical equipment etc but not in tech SAP is good though. Bolt and spotify technicly classify for tech companies but they don't have manufacturing. Then Nokia and Ericsson but they are a shadow of their past The point is simple, Europe doesn't produce much "tech things". Phones, computers, semiconductors, gaming devices, eletrodomestics etc. Think of LG, Xiaomi, Huawei, Samsung, Google, Baidu, Apple, TSMC, Amazon,HP, qualcom, nvidia, intel, AMD, Asus, Acer etc

[@Haykke]

Europe needs manufacturing of goods overall, this is a great thing, either way, I believe that if europe wants to compete with any super power, it needs a bit more restructuring

[@CouchOfPotatoes]

Perhaps a united federation ?

[@sboinkthelegday3892]

Imagine controlling 37% of semiconductor market share, only to completely crap you pants and gift that market share to China, because that made a number go up in the federation's financial records, and made them a servile producer class that competes in having the least workers' rights possible. Super power.

[@Haykke]

@@CouchOfPotatoes hmm maybe something different, maybe we should try remaking the roman empire

[@JanneWolterbeek]

Great one again. Would love to see a video about “the machine that builds the machine” (quoting Elon), namely ASML in Veldhoven, the Netherlands.

[@jascrandom9855]

The company that built the machine that TSMC uses to make their high tech chips... is Dutch.

[@shreyvaghela3963]

Not dutch. Asml is complicated. It's a giant cooperative effort of europe, america and east asia exc china.

[@rickbo5858]

@@shreyvaghela3963 It is dutch... It doesn't make it less dutch when it has acquired foreign companies? By your logic TSMC is a quarter Dutch, simply because of phillips... ASML wasn't/isn't a joint venture between multiple foreign companies (it started as a joint venture between philips and ASM International) , however; foreign partners enabled ASML to develop and manufacture EUV steppers. It's not that complicated...

[@nathancampioni4277]

Hi I'm watching a few videos and they seem pretty intresting and not as basic as one might expect Great Job!! you might want to cooperate with some other small EU channels, making a network might seem more productive, at least to me

[@M3D1AC]

Damn, leaving us on a clifedge!

[@hoogyoutube]

New video coming out in about threeish weeks because we're too lazy to work a lot during our summer vacation. Next video will continue on more interesting European innovation and business so keep your eyes peeled.

[@M3D1AC]

@@hoogyoutube i am already looking forward to it with happiness. :)

[@BeVortex]

And profits from investment with public money will flow in private hands?

[@hoogyoutube]

I’m not entirely sure how much money is going to go towards the salaries of people in the manufacturing companies. I think the logic is mainly to cover the very high upfront costs for building the factories. But, even if they did profit, it can still be painted as a public investment because of the externalities for other European industries.

[@crazygamezockerXD]

@@hoogyoutube semiconductor manufacturing is already a highly automated industry and is probably going to be even more automated in the EU where salaries are much higher, the biggest benefit for the EU is probably more political influence and more tax income.

[@piotralex5]

Important thing you didn't speak about: ASML

[@mikey10006]

I haven't heard a peep about semiconductors recently since the politically powerful auto lobby got their chips.......

[@_loss_]

You make great videos

[@ArwedMett]

This is just stupid. We already have companies like ASML in europe. Yes we do not manufacture the chip, but the machine that is making the chip. So a lot of know how is already in europe and private enterprises can adapt quite fast if they have to. The chip shortage we see e.g. in the automobile industry is self inflicted. It was this industry which cancelled orders during the lockdowns and broke trust with the suppliers. Of course the government also plays a significant role in that since it incentivised these industries to do that.

[@invest_in_dogecoin6398]

I’m so glad I found this channel. I love Europe and the European people

[@tretow1995]

Awesome video Hoog but as someone already commented I don't think the floated 150bn is anywhere near enough.. and would you trust the EU to deliver some returns on that investment? I think the idea of Europe becoming a global leader in high tech / digital sectors such as microchips is unrealistic, that ship has sailed - the US and Far East are just simply much further ahead in terms of experience, expertise and innovation within these fields.

[@joaquimbarbosa896]

I am not so pessimistic but we have to play the cards well. First look at the reasons we DON'T have advanced chip manufacturing From high energy prices, burocracy, high taxes, lack of skiled labour and suply chains and lack of demand The money shouldn't (for the most part) go into just building fabs but to fix those things instead. For exemple reducing burocracy and taxes on chip fabs, trying to reduce energy prices (either for fabs specificly or for everything in general), many ways to do that. Suply chains will than build themselfs and labour will become more skilled if building fabs becomes profitable But Europe still lacks demand for advanced chips, so the same measures with the same money should be going into manufacturing more eletronics

[@aniksamiurrahman6365]

Its great news. But I really doubt what this will bring. While bringing top class Fab on Europe's soil is great. But semiconductor foundry is almost a saturated technology, there is little new to do. Europe shud also focus on building companies that consume those high-tech chips. I guess spending on future like photonic chip and/or neuromorphic computing shud get a good investment too. As always, Europe is at the forefront in researching these newer kind of chips, but are lagging in building industries to produce and utilize them.

[@Dhjaru]

Saturated?? There is a very clear demand when it cant meet world supply. Auto manufacturers not being able to build cars, printer manufacturers removing drm from ink cartiges because no microchip supply, lacking of ps5's the market has a demand and the US and Europe is trying to fill some demand on its own soil rather than expanding a asian fab.

[@Mathoose]

Also should include Merck KGaA. Headquarter in Darmstadt and work in R&D on semiconductors in the US for them.

[@marianandnorbert]

tsmc gets their machines to produce chips from ASML, a dutch company in the netherlands

[@genuinennessbefitting4734]

In 2002, two Japanese companies, Nikon and Canon, monopolized the world's photolithography machine market. At that time, ASML was still a small company, relying on orders from TSMC to survive. Intel established the EUV LCC Alliance to develop photolithography machines using American dry methods and seize American photolithography machine technology. Major manufacturers such as Motorola, AMD, and IBM are allowed to join the alliance, but TSMC is excluded from the EUV LCC alliance. Subsequently, TSMC cooperated with ASML and used the immersion lithography technology developed by TSMC to conduct research and development at F12B, the TSMC R&D headquarters located in Hsinchu Science Park, Taiwan. At that time, there were two EUV R&D units in the world, but Intel's EUV LCC alliance failed. TSMC spent 1 million wafers for testing at the F12b factory and finally successfully created EUV for manufacturing advanced chips. Dr. Anthony Yen, Director of Nanoimaging Technology Development at TSMC, later served as Vice President of R&D at ASML engineering.purdue.edu/ECE/Alums/OECE/2018/anthony-yen

[@sebastianalkema6466]

This is great I’m going to be In Europe and study to be able to make it

[@methos4866]

While money is important i think the autonomy of the EU is even more important. The complete reliance we have on manufacturers outside of the EU is dangerous for our future.

[@mickmickymick6927]

That's like saying 'I could bet on Oxford United to beat Manchester United in the FA Cup' - it's risky, but has the potential for huge reward becaus the odds are so long. Investing in semi conductors is just stupid protectionism. Saudi Arabia invested tons of money into growing wheat over the span of decades - and at the end of it they learnt that they shouldn't grow wheat in Saudi Arabia, they should just import it, it's cheaper, and the Saudi economy can focus on other things its good at. Europe should focus on providing the business environment that allows companies to thrive, not already-failed protectionism.

[@markusz4447]

If europe want's to be able to defend and further it's values and not be at the mercy of certain foreign powers, it has to relocate certain industries to europe (or atleast to strategic allies)

[@ashtons.2483]

In most cases I would say protectionism is dumb but with electronics I see a huge issue with things like national security and privacy. No country could threaten Saudi Arabia's national security with wheat but China could realistically threaten the security of other countries with technology. Additionally, while it is very difficult to grow wheat in Saudi Arabia due to the climate and environment, those aren't nearly as important for semiconductor manufacturing. It would be dumb for the EU to just stop importing semiconductors (just as I think many of the US tariffs were unhelpful) but giving any one government less control by having more countries manufacture would be very beneficial.

[@joaquimbarbosa896]

I just so happens that semiconductors are needed in everything thats related to eletronics, and with that said if Europe doesn't manage to increase semiconductors production it will lose edge on EVERY single emerging field Europe doesn't have to beat TSMC, they just have to make more chips, thats it

[@user-er8tr9kt8l]

The only reasonable thing would be to focus on chips that are needed in the areas Europe is strong in like cars, aviation, machinery and such and by that boostig these industrys as well but Im affraid that they are just not smart enough to do that.

[@avandurion]

According to semiconductor industry association Europe never had a higher share in the market than 10%, in 1990 Japan and USA were leaders. I understand that you are talking about production not market share but even than that seems bogus how can you produce so much when you captured so little market share. This is not the first video of yours where I see bogus information. Can you please provide some sources to back it up?

[@mickmickymick6927]

It's also silly to say 'Taiwan controls the chip industry' - supply chains are complicated. In fact an important part of the supply chain happens in Netherlands. Raw materials come from China, probably there are many other parts which happen in other places. Those places that 'control the industry' do so because businesses got good in those places and they grew, not because their government picked a winner and pumped money into them, as shown by the investment figures you quoted. European-level nationalism should not replace state-level nationalism.

[@Hans-ku7vy]

TSMC makes the best chips in the world and the leader in chip making. they do control the industry

[@vcprocles]

@@Hans-ku7vy Netherlands's ASML provides lithography tech to all fabs, including TSMC

[@fluoroantimonictippedcruis1537]

@@Hans-ku7vy They don't design their own chips, they create things that AMD, Apple and NVIDIA designed. The companies that designed them hold all the value, TSMC owns nothing but the tooling required to make the parts. Intel, because they make their own chips as well as design them, is a larger company that TSMC in terms of revenue, and their money maker is parts for servers and supercomputers, not the stuff they sell to hobbyists and gamers. Intel and IBM dominate the super-computer market. The top super-computers cost 100 million USD a piece and everyone is continuing the push of exascale computing.

[@user-ls4cs1wd2w]

Wrong. The government of Taiwan picked a winner, and now they are winning at the chip industry

[@fluoroantimonictippedcruis1537]

@@user-ls4cs1wd2w define wining at the chip industry. As i said, companies like TSMC don't design their own chips, taiwan doesn't manufacture the tooling/lithography machines, they don't develop design software and companies that are leaders in new transistor technology tend to either be IBM or NEC, neither of which are taiwanese.

[@BioHazardCL4]

Very interesting. Your channel is fascinating and I love the pragmatic nationalist analysis you do with your view for a United European federation.

[@Merthalophor]

I love this pro-European ship. I might be living in a bubble, but imo we're gettin way to little like this... where can I get more?

[@nailil5722]

The investments better go somewhere in southern or eastern EU

[@thijmstickman8349]

It think focusing on more future products like quantum computing would be a better investment in the long term, because beating TSMC in its own game is kinda impossible

[@theamici]

as far as I know, quantum computers are kinda useless, they are essentially experimental tools at this stage, their worth has not been proven

[@parapacem7473]

@@theamici They could have some use for cryptography and cybersecurity

[@methos4866]

Profit is not the only angle that the EU is considering here. It's about autonomy, which the pandemic has shown we have very little of when it comes to manufacturing semiconductors. A complete reliance on foreign manufacturing is dangerous.

[@trdrudedude6099]

I whould say that Being behind somwhere necesitates Caching Up with the rest

[@Stan_Tarka]

Very nice video! However the red text is hard to read against the blue background at 2:40 I really like this video though! I think you will go very far!

[@hoogyoutube]

Noted, going to keep trying to improve. Thank you :)

[@gyrrgibbs305]

A little late here I know, but this video came up on my feed and I just have to nitpick the first line. Semiconductors are not chips and they are not necessarily tiny. Otherwise love your vids though, keep it up.

[@ZtereoHYPE]

This is extremely based

[@genuinennessbefitting4734]

Semiconductor is a capital-intensive industry, and labor cost is not a critical cost factor, so why is Europe's semiconductor outsourced to other areas? Do we talk about the same chip industry, or is Europe weird to outsource components for irrelevant reasons?

[@bluemystic5980]

Ahh that's why the Indian government is also soo keen to setting up semiconductors plants in india with the help of taiwan

[@uuaschbaer6131]

Semiconductors are not chips. Semiconductors are materials into which semiconductor devices are etched.

[@RealShimSham]

ITS "N-vidia" NOT "Nevidia" :(

[@TSM-Gandhi]

ےشفگگچ بگ!🔥👍

[@user-er8tr9kt8l]

Maybe the most stupid thing ever to come out of the EU. When politicians try to reinvent the wheel or just try to invent any wheel at all its 5 past 12. Europe has campions in other fileds of tech and should not try to just run after some fancy stuff on page one of the newspapers but first save and enlarge the advantage in this other tech and then try to go new ways. Also this idea of surpasing without catching up is soo GDRish ... But this whole idea is GDRish. Some old politicians that never had any idea about science and/or technology are hearing some BS from some journalists and belive it.

[@user-er8tr9kt8l]

@Metal Bat What is ironic? That we did not get rid of the GDR elites? Thats not new. we already had that once back in 1919 ...

[@alphamikeomega5728]

Is the thumbnail supposed to look like a green goatse?

[@play-joke1378]

後知後覺的歐盟，用數百億歐元就想迎頭趕上惹，當亞洲國家都是吃素的！

[@genuinennessbefitting4734]

Europe never has been an important chip producer, back in 90s, Japan was the biggest player not Europe.

[@user-er8tr9kt8l]

Dont tell us nonsense here. Europe never had any significant position in the computer/IC industry. This race was won by the US with their space- and defense tech decades ago and where these ICs are getting produced is just a matter of wastewater laws, electricity and labor costs so not Europe or the US anyway. Europe does and should do what it does best: building machines and doing basic research.

[@Pedanta]

Z

[@franknwogu4911]

4:35, that's not the US flag.

[@olegviatkin5674]

amazing video as always man🫶

[@siebentedimension]

I don't know … that is just an example …