GlobalFoundries urges EU to support chip industry -

The European Union should do more to support the semiconductor manufacturing or risk losing out on innovation, GlobalFoundries has said, although its status as an impartial observer is, perhaps, questionable.

GloFo CEO Ajit Manocha highlighted the disparity between the incentives other regions give to chip manufacturers, he told Reuters, with the US and Asia able to offer more attractive conditions to companies.

Manocha said that while Asian companies will often give GloFo the red carpet treatment, as well as New York State authorities, Europe is "not playing that role properly".

Although many of the prominent semi manufacturing firms are based in the East or in the US, Europe has its share of innovative companies Dutch manufacturing equipment firm ASML, for example, has received investment from Intel and Samsung this year, with its technology considered crucial for future chips production. 

According to Manocha, there should be more investment by EU authorities to stimulate production of chips within Europe.  Although this would not generate masses of jobs, Manocha said it would mean reaping the benefits of chip technology created by European companies which are often attracted by foreign countries offering attractive tax breaks.  This would also encourage more an environment for wider innovation, he said.

Although there is manufacturing in the EU by the region's largest chip firm STMicro, it would benefit from the same drive that has seen increased investment in New York State, for example.

Of course, Manocha would say this. He runs a chip company.