Many consumers have heard the woes of semiconductor shortages felt around the world, with the automobile industry being hit the hardest. In reaction to this shortage, the European Commission said it “could approve aid to fund the production of semiconductors in the 27-nation bloc amid a global chip shortage and intense worldwide competition to fill the need.”
Most of the semiconductor manufacturers are in Asia, so this would reduce the EU’s dependence on them and also increase production on their soil. Margrethe Vestager, the European commissioner for competition, stated “the commission will consider approving support to fill possible funding gaps in the semiconductor ecosystem, in particular for European first-of-a-kind facilities”. There will be safeguards put in place to ensure this financial aid is necessary, proportionate and that it doesn’t cause excessive competition.
The EU believes the scarcity of semiconductors will last, affecting the region and potentially the global economy. The US is also looking to reinforce the industry by “boosting domestic semiconductor production”.
Finding a way to meet supply challenges like the semiconductor issue may open the door for manufacturers and businesses to assess their processes and find ways to be less dependent on one source. Pragmatyxs provides consultation and service support to enable companies to manage their labeling needs from any location. As their product line and processes increase, their enterprise labeling solution can grow with them.