European Union chip risk factors

Monday 21st March, 2022 - Bruce Sterling

*Chips used to be mere commodities that you would cheerfully throw away because Moore’s Law would quickly guaranteed you new and better ones.

*Not any more, though. That was then, this is now.


Member States should provide to the Commission information for the purpose of mapping factors, trends and events that could lead to significant disruptions of the global semiconductor value chain with repercussions in the Union (Union risk assessment). Relevant factors to be taken into account could include:

(a) availability and integrity of the services or goods of undertakings in the semiconductor sector in the Union the functioning of which is essential for the semiconductor supply chain;

(b) the rate at which demand fluctuates for different types of semiconductors, also in relation to available manufacturing capacities;

(c) gaps and bottlenecks in manufacturing, packaging and logistics, including shortages in raw materials and available qualified workforce;

(d) accidents, attacks, natural disasters or other serious events with the potential of affecting the semiconductor supply chain;

(e) technical, regulatory or environmental changes reducing manufacturing yield;

(f) concentration of supply with regard to geographical areas and companies, taking into consideration network and lock-in effects;

(g) impacts of trade policies, tariffs, trade barriers and other trade related measures;

(h) authenticity and integrity of semiconductors, possible impact of counterfeit semiconductors;

(i) infringement or theft of intellectual property or trade secrets.