Brussels (The Brussels Morning Newspaper) – SEMI Europe urged the EU to minimize restrictions on outbound investments in foreign chip technology, warning excessive regulations could hinder European semiconductor companies’ competitiveness and research collaborations.
Should the EU Limit Outbound Investments in Semiconductor Tech?
Semiconductor industry body SEMI Europe urged the European Union to put as few restrictions as possible on outbound investment in foreign computer chip technology by companies located in the European Union.
Recommendations to screen outbound investment — European capital being funded in foreign semiconductor, AI and biotechnology companies — are being evaluated, though no EU decision is anticipated before 2025.
The U.S. has published draft rules for excluding some such investments in China that could threaten U.S. national security, a component of a broader push to prevent U.S. know-how from allowing the Chinese to develop refined technology and dominate global markets.
Why Does SEMI Europe Oppose Excessive Investment Restrictions?
“European semiconductor companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance,” SEMI Europe stated in a paper outlining its proposals. It said policies under deliberation by the EU appear to be overly broad and if assumed could force companies to reveal sensitive business information, adding that regulations on cross-border research cooperation would be misplaced.
“We encourage the European Commission to further address these aspects and to not infringe on the ability of European multinational companies to carry out the necessary investments to sustain their operations,” it stated.
SEMI Europe conveys approximately 300 Europe-based semiconductor firms and institutions, including organisations such as ASMLASML.AS, ASMASMI.AS, InfineonIFXGn.DE, STMicroelectronicsSTMPA.PA, NXPNXPI.O, and research centres such as imec, CEA-Leti and Fraunhofer.
Alongside the recommendations for outbound investment screening, the EU has also been shifting towards a law that screens inbound investments of foreign capital that might pose a security risk, such as acquisitions of European ports, nuclear plants and sensitive technologies.
