The European Commission will this week set out its plans to boost microchip production in the region as it looks to reduce its reliance on U.S. and Asian manufacturers.

The European Chips Act package, set for publication Feb. 8, will say that Europe must build up its expertise in advanced chips, artificial intelligence technology and energy-efficient processors, among other areas.

By 2030, 20% of the world's microchips should be produced in Europe, up from 10% currently, European Commission President Ursula von der Leyen said in January. Major local manufacturers include NXP Semiconductors NV and ASML Holding NV, both headquartered in the Netherlands.

In an expected boost to European production, Intel Corp. pledged to build a research and design center in France, a test and assembly plant in Italy and a main wafer fabrication facility in Germany.

The European Commission officially unveiled the plan for the Chips Act in September 2021, with the intent of helping to relieve the ongoing global semiconductor shortage and to improve its chip self-sufficiency.

Thierry Breton, European commissioner for the internal market, said the measures would likely be paid for by a variety of EU, national and regional funds rather than a single source.

Representatives of Belgium, France, Germany, Italy and the Netherlands reportedly expressed support for the bloc's initiative to create cutting-edge chips but said excessive government investments in chip production may result in a subsidy race between EU countries or in chip overproduction.

Meanwhile, in the U.S., President Joe Biden has created an expansive infrastructure proposal, which is expected to result in $50 billion of investment in the semiconductor industry.

In 2021, chip companies recorded collective annual sales of $500 billion, and industry executives expect that total to double in less than a decade.

Europe
Feb. 7	Modern Times Group Mtg AB to report its fourth-quarter 2021 financial results.
Feb. 8	The European Commission expected to unveil its proposed European Chips Act.
Feb. 8	Nordic Entertainment Group AB (publ) to release its earnings results for the fourth quarter of 2021.
Feb. 8	Luxembourg-based Intelsat SA to hold a special shareholders meeting to deliberate on the resignation of existing board directors and the appointment of new board members.
Feb. 11	Mediapro's deadline for TV networks to bid for free-to-air broadcasting rights for the 2022 World Cup.
Feb. 11	Storytel AB (publ) shareholders to conduct an extraordinary general meeting.
United Kingdom
Feb. 6	TalkTalk Telecom Group PLC to publish its fiscal third-quarter 2022 earnings.
Feb. 7	The U.K. Competition and Markets Authority to close its public consultation on mobile ecosystems, such as those of Apple Inc. and Google LLC.
Feb. 10	British Telecom to publish its financial results for the third fiscal quarter of 2022.

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