The European Union (EU) has kicked off an investigation into China’s chip production capabilities, aiming to understand the competitive landscape and potential implications for the European market. This inquiry comes amid rising EU-China tensions, heightened by recent tariffs of up to 37.6% on Chinese electric vehicles.

China’s semiconductor industry has been growing rapidly, capturing significant market share. According to a report by Deloitte, China’s semiconductor sales grew by 30% in 2022 alone, underscoring the urgency of this EU probe.

The primary concern for the EU is how China’s advancements in chip manufacturing could affect European companies and the broader tech ecosystem. A critical component in everything from consumer electronics to automotive industries, semiconductors are vital for economic growth and technological innovation.

During the probe, EU officials will consult experts from various sectors, including technology, automotive, and consumer electronics, to gather insights. For instance, companies like Infineon Technologies and STMicroelectronics could provide valuable perspectives on how China’s growing dominance impacts their global operations.

The EU’s proactive stance seeks to ensure that Europe remains competitive in the high-tech sector while safeguarding against over-reliance on non-EU suppliers. This move aligns with broader EU policies aimed at fostering innovation and maintaining technological sovereignty.

By addressing these challenges head-on, the EU aims to bolster its own semiconductor industry, thus ensuring a balanced and resilient tech ecosystem in Europe. This investigative effort represents a strategic step towards understanding and navigating the complexities of global semiconductor production.