Europe is facing a “large-scale crisis”

According to data from the American company Polar Semiconductor, which specializes in, among others, in the production of semiconductors for the automotive industry, a modern car with a conventional drive may be equipped with up to 1,000, and an electric vehicle with 3,000. microprocessors. – Broad public opinion learned about the importance of semiconductors in the automotive industry three years ago during the so-called the chip crisis, when tens of thousands of cars could not leave factories due to months of delays in microprocessor deliveries. This resulted in a rapid increase in car prices and long delays in deliveries of vehicles already ordered – said Tomasz Bęben, president of the Association of Automotive Parts Distributors and Manufacturers (SDCM) and member of the management board of the European Association of Automotive Parts Manufacturers (CLEPA).

– The European automotive industry is afraid that such a situation may happen again and on a much larger scale – he added.

Bęben pointed out that the industry's concerns about uninterrupted access to semiconductors result from Europe's excessive dependence on supplies of chips manufactured outside the continent.

– The popularization of electric cars and the increasing saturation of the automotive industry with IT solutions causes the demand for chips in the automotive sector to grow year by year – he said. He emphasized that this concerns not only the needs of car companies, but also independent suppliers of parts and components who also use microprocessors in their products. In Bębno's opinion, disruptions in chip supplies affect the entire chain of related companies and industries, also affecting plants in Poland.

– When German car factories stopped production due to a lack of semiconductors, the Polish automotive industry also suffered because the demand for components produced in our country ceased. Many companies operating in Poland, including those with Polish capital, deliver their products for the first assembly, emphasized Bęben, adding that the annual value of Polish exports of automotive parts is USD 18 billion (approx. PLN 72 billion).

Representatives of the European automotive industry hope that the security of supply of microprocessors will be ensured by the implementation of the European Chips Act. It provides for, among others: allocating over €43 billion in public and private investment in chip production, and sets out measures to anticipate, prepare for and respond quickly to future supply chain disruptions together with Member States and European Union partners. The regulation on this matter entered into force in September last year. but now it is beginning to take the form of specific intentions. Last week, a hearing was held before the European Parliament committee of Henny Virkkunen, candidate for the position of Commissioner for Technological Sovereignty, Security and Democracy, responsible for the implementation of the act. Virkkunen presented a vision of Europe's technological sovereignty, emphasizing the need to reduce dependence on chip supplies from outside the EU. She announced, among others: increasing the EU's share in global semiconductor production from the current 10 to 20 percent. by 2030, as well as the development of a European development strategy in the field of quantum computing. – The European Chip Act and its implementation are of strategic importance for the European, including Polish, automotive industry. The transition to electromobility and the development of autonomous vehicles means that the sector will need more and more advanced chips. Semiconductors and modern electronics are the foundation of the technological revolution in the automotive industry. They will enable cars to recognize their surroundings, react to the road situation and optimize energy consumption, Bęben noted. The European Association of Automotive Parts Manufacturers (CLEPA) has identified the pillars on which Europe's future technological independence should be built.

– We must focus on investments in all links of the semiconductor supply chain – from design to production. Creating appropriate conditions for this requires reducing energy costs and ensuring its stable supplies, as well as supporting the development of qualified staff, Bęben pointed out.

In CLEPA's opinion, it is necessary to provide systemic support for implementing innovations in industry at every stage – from chip design to their advanced integration. It is also necessary to develop cooperation with politically safe partners: the United States, Japan or South Korea. – Currently 60 percent global semiconductor production is focused on Taiwan. In the case of the most technologically advanced nanochips, this percentage is as high as 90%. Possible aggression against Taiwan from China or even blocking the island would mean a cataclysm for the world economy. We must eliminate this risk and rely more and more on European production, Bęben emphasized. The president of SDCM and member of the CLEPA board pointed out that building appropriate technological capabilities and production plants in Europe will take years and cost billions of euros.

– So it's good that the European Chip Act has given this a legal framework. Now the European, including Polish, automotive industry will be impatiently waiting for the implementation of the plan to regain technological sovereignty by Europe. We need chips made in Europe, he concluded.