The US and the EU are going to stop racing subsidies for the production of chips

The United States and the European Union are teaming up to prevent the “subsidy race” that arises from attempts to increase the production of scarce semiconductors. This was stated by a senior official from the Biden administration, states Reuters.

The joint step will be announced at the second meeting of the National Security Council and EU Trade and Technology Council (TTC), which will be held on Sunday and Monday in Paris.

Instead of racing subsidies, Washington and Brussels want to encourage investment in chip production. They will cooperate in this work. The official also said that an early warning system was announced at the meeting, which would help detect and eliminate failures in supply chains.

We will remind you, that the constant lack of chips led to disturbances in the automobile and electrotechnical industry. Because of this, some companies had to cut production.

Meeting of the Council will be chaired by the Secretary of State Antony Blinken, Commerce Department Secretary Gina Raimondo, and U.S. Trade Representative Katherine Tai. EU trade chief Valdis Dombrovskis and EU antitrust chief Margrethe Vestager will also participate.

In addition to discussing chips, the meeting is going to announce a new scheme of cooperation aimed at combating disinformation on the Internet – in particular, due to false statements by Russia about the invasion of Ukraine.