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U.S., EU Team Up To Avoid “Subsidy Race” Over Chip Production

The United States and the EU are working on a plan to help them avoid a “subsidy race” while boosting chip production.

The move, announced by a senior Biden administration official will be unveiled at the second meeting of the U.S.-EU Trade and Technology Council (TTC). The event will take place in Paris on Sunday and Monday.

“You’ll see us announce… a transatlantic approach to semiconductor investments aimed at ensuring the security of supply,” said a senior administration official.

The move will encourage chip investment and ensure that investors and countries “do so in a coordinated fashion and don’t simply encourage a subsidy race,” the official said.

An early warning system to locate and remedy disruptions in the semiconductor supply chain would be announced at the meeting.

Expected officials at the meeting include Secretary of State Anthony Blinken, Commence Department Secretary Gina Raimondo, U.S. Trade Representative Katherine Tai, EU trade chief Valdis Dombrovskis and EU antitrust chief Margarethe Vestager.

The sources for this piece include an article in Reuters.

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