EU OPENS DOOR TO GIVING AID FOR SEMICONDUCTOR PRODUCTION

The European Commission said Thursday that it could approve aid to fund production of semiconductors in the 27-nation bloc amid a global chip shortage and intense worldwide competition to fill the need.

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The EU’s executive arm expects that the scarcity of semiconductors — a key component in everything from smartphones to cars — will last, affecting the region’s economy.

Automakers have been among the hardest hit by the shortage, which has slowed or halted production.

Most of chipmakers are based in Asia, and the bloc wants to reduce its dependence by boosting production on its soil.

“The commission will consider approving support to fill possible funding gaps in the semiconductor ecosystem, in particular for European first-of-a-kind facilities,” said Margrethe Vestager, the European commissioner for competition.