The commission said it took note of the report but defended its efforts [File]
| Photo Credit: REUTERS

The EU is lagging behind in the global race to produce microchips, and looks set to fall well short of its target to claim a fifth of the world’s market, the bloc’s auditors said Monday.

“The EU urgently needs a reality check in its strategy for the microchips sector,” said Annemie Turtelboom, a member of the European Court of Auditors.

“This is a fast-moving field, with intense geopolitical competition, and we are currently far off the pace needed to meet our ambitions.”

The disappointing outlook for the European Union comes despite Brussels passing a flagship Chips Act in 2023 aimed at bolstering production in the bloc.

Turtelboom said that at current growth rates, the EU was “nowhere close” to reaching its target of having a 20 percent share of the global microchip market by 2030.

In its own estimates, the European Commission forecasts the EU’s share will only reach 11.7 percent in 2030, up from around 10 percent in 2022.

“Europe needs to compete — and the European Commission should reassess its long-term strategy to match the reality on the ground,” Turtelboom said.

The EU began prioritising local chip production after the coronavirus pandemic triggered supply chain shocks that led to significant shortages.

Leading powers like the United States and China have also ramped up efforts to bolster their own industries.

The auditors’ report said investments by the EU’s competitors “dwarved” that foreseen by the Chips Act.

The bloc’s efforts were also hampered by other factors including a reliance on imports of raw materials, high energy costs, export controls and a shortage of skilled labour, it said.

The commission said it took note of the report but defended its efforts.

“The Chips Act has laid a strong foundation in consolidating Europe’s position in the global semiconductor market after two decades of decline, and put Europe back on the path of growth,” said EU digital spokesman Thomas Regnier.

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NEW DELHI: Urban Company has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) to raise Rs 1,900 crore. According to its Draft Red Herring Prospectus (DRHP), the IPO will comprise a fresh issue of shares worth Rs 429 crore and an offer for sale (OFS) of shares worth Rs 1,471 crore by existing investors.
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The company plans to utilise the proceeds to fund technological upgrades and cloud infrastructure (Rs 190 crore), lease payments for new office spaces (Rs 70 crore), marketing initiatives (Rs 80 crore), and for general corporate purposes.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are acting as the book-running lead managers for the IPO.
Urban Company operates a technology-driven online marketplace offering home and beauty services. As of December 31, 2024, it had a presence in 59 cities across India, the United Arab Emirates, Singapore, and Saudi Arabia, including 48 locations within India.
The platform enables consumers to book a wide range of services such as cleaning, pest control, electrical and plumbing work, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy, with services delivered by independent professionals.