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What is EU-style strengthening of economic security? February 17, 16:45

Economic security that countries around the world are trying to strengthen against the backdrop of the conflict between the United States and China.

Semiconductors are now a symbolic material.

On February 8, the EU-European Union announced a bill aimed at strengthening the semiconductor production system.

The pillar also includes taking steps to "special cases" that the EU has not done in principle.

What is the EU's speculation about economic security?

(Brussels bureau chief Kyoko Takeda)

"5 trillion yen scale" semiconductor bill

"This is clearly one of the most important industrial legislation. Semiconductors are important to the industry as a whole. We cannot stand by this competition."

EU Commissioner Breton, who led the compilation of the semiconductor bill, said at a press conference on the 8th.

The EU has announced that it will invest 43 billion euros in public and private sectors, or 5.6 trillion yen in Japanese yen, to strengthen its semiconductor research and development and production systems.

Semiconductor production in the EU, where the world market share exceeded 20% in the 1990s.

However, due to the growth of companies in South Korea and Taiwan, it has now dropped to about 10%.

The EU aims to increase its global market share to 20% in 2030.

In the meantime, we expect the world's semiconductor production to double, so we need to quadruple our production capacity to virtually reach our goal.

Without giving up a special case

There are three pillars of the EU's efforts.

One is, so to speak, "to foster the most advanced semiconductor industry in the EU".

The EU and member states have contributed public funds to support the development and commercialization of cutting-edge semiconductors.

For example, a company alone has high costs and risks, and has set up a prototype production line.

The second pillar is "specially granting subsidies to secure supply."

In principle, the EU prohibits member states from subsidizing certain companies or products in order to protect fair competition.

However, this time, as a special case, if it is to attract factories that are important for securing the supply of semiconductors, the member countries will be allowed to provide subsidies after undergoing prior examination.

It can be said that he showed an attitude of giving priority to economic security without giving up special cases.

And the third is "preparing for the semiconductor crisis."

As the EU, we constantly monitor the supply and demand situation of semiconductors and foresee the situation where supply is likely to be stagnant.

If a serious supply shortage is expected, an emergency measure will be taken as a "semiconductor crisis", and the EU will jointly procure or order subsidized manufacturers to give priority to important areas in the region. It is said that it can also be done.

Extraterritorial dependence that was keenly felt by the corona

The EU tries to secure semiconductors by all means.

There is a strong sense of crisis in the background.

The EU announced a new industrial strategy on March 10, 2020.

The two pillars were climate change countermeasures and digitalization, and the aim was to strengthen the competitiveness of EU companies.

However, the next day, WHO recognized that the new coronavirus was a pandemic.

Supply chain = supply network for parts is confused, and semiconductors are in short supply.

Without semiconductors, climate change countermeasures and digitalization will not progress.

The EU was keenly aware of how dependent its strategic supplies were outside the region.

According to Breton, the EU once faced a difficult situation to obtain the ingredients needed to produce the new Corona vaccine due to the export restrictions imposed by the United States.

"Strength" by reducing dependence

Based on this experience, the EU investigated the dependence of strategic supplies on the outside of the region.

Of the 5200 imported products, 137 were identified as having a particularly high dependence on the outside of the region.

It includes products that utilize semiconductors, mineral resources, pharmaceutical materials, and energy-related products such as petroleum products, which are necessary for climate change countermeasures and digitization related to the future of EU industry.

China is by far the largest source of dependence at 52% on a monetary basis, followed by Vietnam at 11% and Brazil at 5%.

After that, the industrial strategy was revised in May 2021.

We have taken a stance of working to reduce the dependence of strategic supplies on the outside of the region.

It is said that there are a wide range of measures such as diversification and stockpiling of supplies, and promotion of investment through public-private partnerships.

"Aggression" by making international rules

The EU's focus on economic security is not limited to securing supplies.

The "standardization strategy" was announced on February 2.

The aim is to lead the world in creating international rules for technology and product standards.

We believe that if we can create rules that are favorable to EU companies, we will be able to increase our competitiveness.

In the strategy, ▽ semiconductor safety, ▽ production of vaccines and pharmaceuticals for the new corona are set as priority areas.

It includes what kind of standards will be needed, and the establishment of a system to make predictions and move.

"Defense" of companies in the region and competitiveness

If the standardization strategy is an "offensive" approach, "defensive" measures are also being considered.

The European Parliament is currently discussing legislation to protect EU companies and their competitiveness from government-funded companies outside the region.

If these companies buy EU companies or participate in bids by public institutions, the EU can check in advance and, in some cases, ban acquisitions or successful bids.

Although it is not intended for a specific country, the document summarizing the reasons and background for submitting the bill shows that the number of acquisitions of EU companies by China increased significantly through 2016, and that China acquired companies overseas. As a feature of, it is stated that the Chinese government is funding, and it can be seen that China is in mind.

"Open" strategic independence

The EU's underlying idea in advancing a series of measures is "open strategic independence."

With the deepening conflict between the United States and China in mind, he says, "We will make the best use of our relationships with the outside world to firmly protect the interests of the EU."

Commissioner Breton said of the "European image" he is aiming for.

"Europe will invest in cutting-edge technologies and products to stay competitive and drive the market of the future. The ability to produce what we need, rather than relying on the outside of the region to produce what we need. Europe as a "factory" that regains control of the world market. Europe is open to the outside, but the conditions for it are decided by itself. Europe to confront extraterritorial dependence "

In response to this EU stance, some member states and experts have nailed it to prevent protectionism.

Commissioner Breton dismisses concerns about protectionism as "exaggerated," but I think we need to take a closer look at future concrete moves.

Protect yourself from "interdependence used"

As tensions continue over Ukraine, the EU, which has relied on Russia to import natural gas, is also facing energy security issues.

The shift to renewable energy is becoming more and more talked about in the context of energy security, not just climate change measures and growth strategies.

In a speech in January, EU High Representative Borrell acknowledged that "the 21st century is an era in which interdependence is used as a weapon."

Dependency, which has become stronger as globalization progresses, can be used as a "weapon" once it falls into a conflict with the other party.

It is certain that the EU will accelerate its economic security efforts to protect itself from such “weapons”, and I feel that Japan should keep an eye on that move.

Kyoko Takeda　 ,

Director of Brussels Bureau

Joined in 2001 Covered

EU, etc. currently affiliated from July last year