The news: Eurometaux, a European metals association, warned that rising electricity costs in the region for the next decade would affect attempts to recover from the chip crisis.
Why it’s worth watching: A European power crisis, which has seen electricity prices quadruple, is already impeding production and shutting down facilities in silicon and metals industries across the EU, further complicating the region’s efforts to be more competitive in silicon production, per The Register.
The bigger picture: Europe is in a precarious position with operations in various smelters and factories that are critical to silicon production under threat. The gap between ordering a chip and delivery is at an all-time high of 25.7 weeks, per the Susquehanna Financial Group.
What’s next? EU countries need to find alternative sources of energy to supply their chip fabs or accelerate their adoption of green energy before going all-in on expanding silicon production to overcome the chip crisis.