- Setback despite government effort: We regret the withdrawal of Broadcom’s investment, a setback which, despite the work of the administrations, is evidence of the need for a more agile regulatory framework.
- Urgent reform of the Chips Act and a strong EU domestic policy: It is imperative that European regulations are adapted to facilitate and accelerate future strategic investments in semiconductors and that the EU takes a strong stance on US foreign policy.
AESEMI, the Spanish Semiconductor Industry Association, deeply regrets Broadcom’s decision not to go ahead with its announced investment to set up a packaging fab in Spain. While this news is a setback for the ambitious objective of positioning Spain as a strategic hub in the semiconductor industry, and despite the work and efforts made by the administrations to attract and consolidate this investment, it underlines the imperative need to review and streamline the mechanisms governing the attraction of investments of this magnitude.
At AESEMI, we had welcomed Broadcom’s announcement as an unmistakable sign of the high attractiveness of the Spanish ecosystem for the semiconductor and microelectronics sector at a global level. We were convinced that it would be the first of many successful proposals from international players to invest in our country, and we remained committed to working with Broadcom to integrate its value proposition with the needs of the Spanish ecosystem.
This incident leads us to reiterate the importance of a common industrial policy that transcends ad hoc incentives and allows for a coordinated approach in the efforts of Member States and the European Union to achieve the objectives of strategic autonomy. While we welcomed the political agreement on the Chips Act as an important step forward in providing legal certainty for major incentives and establishing mechanisms to boost the growth of the sector, we believe that it is only a first step on a long road that still has a long way to go.
The current situation underlines the urgency of a thorough reform of European chip regulation. It is essential that the legal framework is sufficiently agile and attractive to ensure Europe’s competitiveness in the global semiconductor ecosystem. We need mechanisms that not only provide certainty for investments, but also accelerate them as much as possible, removing barriers and red tape that can deter strategic companies.
Moreover, this situation underlines the need for a strong domestic policy on the part of the European administration to meet the challenges of today’s complex foreign policy. Stability and predictability in international relations are crucial to foster a secure investment environment in the globalised semiconductor sector, and Europe must consolidate its position.
At AESEMI, we firmly believe that the best way to continue building EU industry is through the creation of a common industrial policy that gives a coordinated approach to the efforts made by the Member States and the European Union to achieve the objectives of strategic autonomy. Without a strong commitment to a common industrial market in Europe, irrespective of the capabilities of individual governments, we will fail in the global struggle for leadership in the semiconductor industry. We will continue to work tirelessly to strengthen and boost the Spanish semiconductor ecosystem and to attract new investments that favour our productive fabric in a transversal manner. We call on the European institutions and the Spanish government to work closely together to create an environment that truly facilitates and accelerates the arrival of high added value projects such as the one that unfortunately escapes us today.