US, EU Must Avoid Subsidy Race Amid Chip Shortage: EU’s Vestager

By Reuters
Reuters
Reuters
November 12, 2021 Updated: November 12, 2021

The United States and the European Union must avoid a subsidy race as they rush to support semiconductor production amid a global chip shortage, EU Competition Commissioner Margrethe Vestager said on Friday.

“We really need to avoid a subsidy race, a race that leaves everyone poorer off,” Vestager said in a speech at the University of Leuven, warning taxpayers would have to fund this.

“In the present circumstances, it may be a temptation too hard to resist for companies to try to play governments out against one another, scanning the landscape to see who will pay more—the risk, of course, is letting taxpayers, whether European or American, pick up the bill and getting maybe very little from that investment,” she continued.

Reuters