BRUSSELS—A European Union proposal to increase microchip production could unleash tens of billions of dollars in funding for research and new production facilities, part of the bloc’s economywide effort to boost its commercial independence.
The European Commission, the EU’s executive arm, introduced a plan on Tuesday to make available about $49 billion in public and private funding for the chip-making industry. The proposal would also give the Commission power, under some circumstances, to demand that companies give priority to specific products where there is a shortage.
“Securing the supply in the most advanced chips has become an economic and geopolitical priority,” said
Thierry Breton,
European commissioner for the internal market. “We are putting everything in place to secure the entire…
