EU says Chinese chip investments, trade wars might prompt market share loss: report
29/06/2024
The European Commission warned that China's mounting investments into its domestic semiconductor industry might lead to Western chip companies losing market share in the PRC, according to a report by Bloomberg.
The warning came from a report written by the commission, which found 30% of the world's microcontroller demand stems from China. These are used in automobiles, industrial applications and consumer electronics.
Companies that could lose market share in China include NXP Semiconductors (NASDAQ:NXPI), Infineon Technologies (OTCQX:IFNNY) and ASML Holdings (NASDAQ:ASML), the report said.
"Discriminatory standards, local content requirements, and other non-tariff barriers could be used (and are being used already) to incentivize the growth of domestic MCU companies in China, that can leverage its vast EV market, at the detriment of European and Japanese suppliers of chips," read the commission report.
China plans to invest more than $100B into the construction of new chip plants, and is encouraging Chinese manufacturers to purchase analog, discrete, mixed-signal and power semiconductors from domestic companies.
More on ASML Holding, Infineon Technologies AG, etc.