On May 16, the U.S. and the European Union plan to announce a collaborative plan to work together to combat semiconductor supply disruptions. Senior U.S. officials are visiting the French tech hub of Saclay, where the U.S.-EU trade and technology committee, which was established last year, will meet there.

The United States and the European Union will introduce an "early warning system" of semiconductor supply disruptions, hoping to avoid excessive competition among Western powers for key technology components.

A persistent shortage of chips across the industry has disrupted production in the automotive and electronics industries, forcing some companies to scale back production. But Congress has stalled on U.S. legislation that would give chipmakers $52 billion to expand production.

The industry has been plagued by shortages of components for chipmaking, blaming the impact of global demand for electronics and a tightening of supply chains caused by the coronavirus pandemic.

In addition, in the face of the semiconductor supply disaster in the automotive field, the United States has frequently acted on the grounds of supply chain transparency. After reading the operating results of Chinese companies such as Huawei and SMIC, the United States plans to improve the effect of sanctions, unite more allies, and take action from the entire semiconductor industry chain.

The United States and the European Union will announce a joint effort to avoid a "subsidy race" as they scramble to boost production of scarce semiconductor chips, a senior Biden administration official said.

"We want to agree on high levels of subsidies, which do not exceed appropriate subsidies," EU competition commissioner Margrethe Vestager told reporters.

The aim is to "because both Washington and Brussels want to encourage semiconductor investment in our respective countries, we do so in a coordinated way rather than just encouraging a subsidy race," said a U.S. official, speaking on condition of anonymity.

The U.S. has already established its own early warning system in 2021 that looks at supply chains in Southeast Asia and has been "very helpful in helping us prepare for several potential shutdowns earlier this year," U.S. officials said.

The official added that both sides are looking ahead to the impact of supply disruptions caused by China's coronavirus lockdown. The EU and U.S. will also announce joint measures to combat disinformation and hacking, particularly from Russia, including cybersecurity best practice guidelines for small and medium-sized businesses and on trusted technology supply, the official said. business task force.