Duration 22:52

Should the EU invest more in its strengths | DW Business

by DW News

50 104 watched

746

Published 11 Aug 2023

With EU backing, Germany is spending billions to attract microchip makers Intel and TSMC to build within its borders. Will its spending spree help modernize the country's tech and manufacturing landscapes, as Berlin promises? Or should Europe's largest economy focus instead on its industrial strengths? Chapters: 00:25 Can Europe compete? 01:04 Berlin’s chip deal 03:00 ‘Jury is out’ on chips investment 07:39 Is ‘globalization’ a dirty word? 10:01 Germany’s falling competitiveness 14:01 Are state subsidies the right way? 17:20 The EU as ‘superpower?’ Subscribe: /user/deutschewelleenglish For more news go to: http://www.dw.com/en/ Follow DW on social media: ►Facebook: https://www.facebook.com/deutschewellenews/ ►Twitter: https://twitter.com/dwnews ►Instagram: https://www.instagram.com/dwnews ►Twitch: https://www.twitch.tv/dwnews_hangout Für Videos in deutscher Sprache besuchen Sie: /dwdeutsch #TSMC #economy #Germany

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Comments - 464

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@nhecos29989 months ago Europe playing to its strengths and reducing dependency from others are not mutually exclusive. Disruption to supply chains during the pandemic has proved that there must be at least some strategical production capacity that must be guaranteed in order to mitigate the impact of global events, and there is no way around this fact. This doesn't mean we will stop sourcing from outside of Europe, it just means not putting all our eggs in the same basket. ... 88
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@hhKJgf1M8a0rzt8hP9 months ago A week ago, my country Slovenia was devastated by massive floods, impacting 2/3 of the country. Despite the war ravaging their own country, Ukrainians have sent truck convoys carrying heavy equipment, such as excavators, to aid us. Additionally, Ukrainian individuals who came here fleeing the war are already providing assistance. True friends reveal themselves in difficult times. ... 114
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@carasu.9 months ago You don't know how big the ocean is while you're swimming in it 10
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@lucasgssilveira9 months ago Once upon a time Taiwan wasn't strong in chip manufacturing either. They invested on it and are now world leaders in that sector. 70
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@JoeyBlogs0079 months ago Selling out to China and forgoing IP rights, was the greatest ever western mistake and could cost the west the entire farm. It might be too late to recover, but try they must. Germany must cover all bases and not simply rest on what it's good at. Technology independence is essential. Germany should not only build on its strengths, but also eliminate its weaknesses. Too narrow a focus is a high risk strategy. That is why the EU got trapped by reliance on Russia. Bad mistake. ... 55
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@brentc93819 months ago We just need a baseload of chipproduction in Europe for our own security 36
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@danilordizon9 months ago Europe helped build China economy along with America, so, of course, Europe can compete. 17
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@Jefff728 months ago I'm an American living in Germany and i find that Germans are a pretty conservative people. I hear them often say, we don't do that. It's like no one wants to be the first to do something different from the rest. I also find them very slow to change. ... 2
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@thegreatdane36279 months ago we seem to be moving towards a new cold war. So it doesn't really matter if production in Germany is competitive or not, as there will most likely be a lot less global trade in the coming years. Supply chains will have to be shortened, we can no longer rely on countries on the other side of the world for anything important. ... 31
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@rosshilton9 months ago Germany is buying market production rather than finding it. That has never worked anywhere in the world. 2
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@markaberer9 months ago I think subsidizing certain projects can work like a Schwerpunkt-tactic. If it manages to draw peripheral industry and services to create a self sustaining and growing economy after cutting back spending, I would consider it worthwhile. ... 4
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@HongKongFilmVibes9 months ago @DW News Please change the title to "Should Germany invest...", you barely cover any other European country (mentioned ASML from Netherlands once)...Overall I think the EU should play to its strengths and improve on its weaknesses (never good to rely too much on others for essentials; the pandemic and recent war issues made that crystal clear). But back to my point about how DW makes titles for their programs. There are so many strong aspects for Europe from some other larger and smaller countries. E.g. Italy is an aerospace, defense tech, automotive/heavy industry, energy and supercomputing leader (the world's/Europe's 4th/2nd most powerful supercomputer sits in Bologna; Italy is Europe's second largest manufacturer e.g. roughly >60% of components in German cars come from Italy. It is one of the world's most automated countries and the world's third largest exporter of robotics. Companies like Avio Aero, Leonardo, Comau, Ansaldo STS, ENI, Prysmian Group are among the global leaders in their field) Italo-French company ST Microelectronics is also among the world's top semiconductor companies and a great example of EU partners creating joint efforts (Airbus is another great example). Not to mention French companies like Alstom, Thales, Swiss companies like ABB or Dutch companies like ASML, Philips...Quantum computing giant SEEQC opened two major global research centers Europe (Italy and England, the latter technically not EU, but still Europe ;P). But no, we mainly hear about Zeiss and why GERMANY needs to invest to do this and that & partly Macron bla bla.... At least have the decency to be straight-forward about what the talk will be about. Please DO NOT make GERMANY = EU or GERMANY/FRANCE = EU the standard when talking about the EU, otherwise it is worthless tuning in....there are many other countries contributing to the EU's strengths, not only Germany (or France).Yes, Germany is the largest economy, but without the others it wouldn't be what it is and neither would the EU! ... 10
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@Siranoxz9 months ago European strengths lies in open source development.
Chip development is extremely essential in the future for Europe.
But open source is where Europe does shine, because its community based instead of vendors and big tech companies. ... 24
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@mylifeuntilnow9 months ago Yes, I hope they can continue to focus on what they are good at and that they can bring forward their specialized talents while modernizing with expanding education systems and cultural sectors as they implement productivity enhancing softwares... It makes me feel better to have the west focusing on chips, but I also see the huge risk of huge centralized investments so I hope it works out. ... 16
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@AccidentalScience8 months ago Bottom line: de-regulate. The opposite of what the EU Commission is going to do. 1
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@TheMeLost9 months ago Germany led the EU in protectionist measures to compete with the USA as a home for the digital economy over the last 15 years.
Chips are manufacturing, traditionally something Germany has been good at. It is also a component for other manufacturing. This strikes me as being something they should focus on having some capacity to manufacture. ... 3
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@BraveDeterminedMerciful9 months ago Semiconductor investments by Europe (not only the German tax payers are contributing) have the same reason as the US subsidized investments: reduction of dependencies outside of its influence in case of global crises. It is true that the chips that will be built are not the most advanced, but that is because chips will be produced for the highest market demand. That doesn't mean that advanced chips cannot be produced in case it's needed. With these new production facilities combined with the strength of ASML Europe will be able to be independent in case of a crisis. We have learned not to become dependent on strategic resources.
Regarding AI the American pundit is arguing that excellent AI research done in Europe, but overregulation will stagnate competitiveness, and that it's better not to regulate and first discover what is possible. The counter-argument to make here is of course that the tech industry has asked for regulation because of the risks that come with AI, which is already known. Instead of the typical no-government intervention the US pundit advocates, the US should take the regulations the EU has put in place as guidance for its own attempts to regulate in order to prevent a similar mess the US tech industry is creating in the world of social communication where unregulated Facebook, Twitter/X and the likes are creating a whole eco-system of lies that people get caught up in, which is taking an axe to democracy itself.
It would be good if DW would take the global political situation into account when it speaks about economics, and put counter-arguments to pundits who are clearly pushing an American, short-sighted agenda. All good between friends, but come on DW, up your game and level and put better EU counter-arguments forward. It would raise the level of the conversation. ... 70
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@thomkolton39289 months ago Very good interviewer. And very interesting exchange. 2
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@carlosblanco40409 months ago Woow. Chips are strategically essential therefore great move … there’s more than dividens… 1
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@zvikaso9 months ago I would love to see the investment coming from EU and not Germany. Its in the interest of the entire union. 1
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@RsOnTheStreetS9 months ago We need high end semiconductor industry to produce and test machines for it.
And it isnt that important how much it costs, its important to have it when supply from outside stopps. To build it then would be the bigger and expensive problem. ...
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@waldemarkirszniok2988 months ago It's a bit telling, that in this video EU, Europe and Germany are terms used interchangeably, but only German interests and the German industry is being discussed here. 1
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@karpuzye9 months ago Germany first of all needs stable internet connection. 2
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@squireson9 months ago Is it just me or was the interviewee just repeatedly missing the point of the whole endeavor. It seemed like almost willful ignorance. Europe doesn't wind up with an oversupply if a war with Taiwan or Korea or China breaks out. Keeping indigenous production is to guard against these vulnerabilities. I believe Taiwan produces a dramatic percentage of the world's advanced semiconductors and more and more of the world products depend on them. It is unacceptable to leave such a large percentage in the hands of so few countries. ... 4
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@PMMagro9 months ago "Obsession with privacy" is a matter of priorities. We are not a chiense dicatorship so we do want privacy for our citizens.
Germany is not Europe or even the EU... Our strenght in Europe, also Germany, is usually we do not only look at thsi is how it is made in my country/town but being open to world wide trade. ... 2
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@youme14149 months ago Where will Europe get the raw materials from? It is easier said than done. 2
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@praveenmunda13238 months ago Europe should focus on Automobile Industry rather than chips.
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@Ikbeneengeit9 months ago Great interviewer, he asked smart challenging questions and didn't let the guest make wild claims.
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@StrongKickMan7 months ago 1 important fact is, that Europe is the coolest continent.
So the future will be good.
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@nukiolbartes62799 months ago why asking american talking about tech investment in germany? its not like germany is vassal state of us.
but definitely interesting take about division of labour and germany shouldve played its strength. while his anti regulation stance is way too liberal for europe. ... 1
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@walkvi978 months ago My professor in uni told me that for car manufacturing the most advanced chips are not used, since they are more reliable. Which is more important than processing power in cars. The most advanced chips are only used in computer and phone components since a failure only leads to a bug and has less severe consequences compared to a bug in a car potentially having lethal consequences. Thus, Germany would not need the most advanced chips since it does not produce computer or phone components ...
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@marcello42588 months ago With the euro dropping again so hard I don’t think people should invest in Germany
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@elba_magellan9 months ago Anchors team did his research. The gentlemen interviewed didn't get these state interventions are being done for security and independence not for economic efficiencies through national specialization that result in fragile supply chains and a lack of redundancy when overdone. ...
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@pumalee19979 months ago The West should be self-sufficient, but it is a bit more expensive. Other regions can enjoy the benefits of international division of labor. 2
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@KeepingitRiowithGringoSuave8 months ago A typical free market viewpoint. One thing clearly NOT properly being addressed by the free market is risk management. How did it work out for Germany to be dependent on cheap Russian gas? Germany was well aware of the risks of being dependent on Russia, so why did they continue with these pipelines? Money? Politicians and business leaders who had kompromat created on trips to Russia? Why is this not investigated?
So how is the free world being dependent on Taiwan for micro chips a good idea with Chinese threats to invade Taiwan? Letting the so-called "free market" do your risk management is almost as bad as allowing the free market destroy the environment. ...
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@veer668 months ago I usually choose European tech providers, e.g. Protonmail, Hetzner because of privacy policies in Europe.
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@nathancortes37229 months ago Characterizing privacy as an obsession isn't a good look these days. 1
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@fredericrike59749 months ago Both of you seem to have missed a very large factoid about German industrial processing; they make chemicals, lots of chemicals; they use a bunch of natural gas to get things hot, but they use even more as "feedstock" to build the molecules of the chemicals they can sell. Germany is presently feeling pretty good about it's present gas supply- they wouldn't if just BASF cranked back up to full production. Germany's chemical industry will need a major overhaul as well as find vendors that will give them prices that won't make their finished chemicals cost prohibitive. ...
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@sneakymove9 months ago In the light of Arizona problem. Labour unions in Germany should discuss the pay and working hours alignment to be part of the subsidy?
Otherwise the operation timeline will be pushed back if tmTSMC could not get the talent or labour they want. They could ended up migrating a lot of Taiwanese engineers to Germany. ...
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@user-st3im5ge7f9 months ago USA compelled TSMC to invest in USA making no competitive chips in market. 1
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@drdinler9 months ago Selling Kuka robotics to China, then giving away billions to tsmc. Can anyone explain how this make sense? 1
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@GdzieJestNemo8 months ago the interview confused EU with Germany for a big chunk of the interview
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@jcliu9 months ago “This sort of state-led industrial policy isn’t what made Germany rich.” Huh? It’s harder to be more entwined with the state than, say, Volkswagen. Also, Germany’s hardly alone—all the advances that kept America’s tech advantage in the last 50 years (semiconductors, internet, GPS, etc) were also the fruit of industrial policy, except that Americans refer to it as “defense spending.” ...
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@odysliu92359 months ago Of course Europe should invest on its own strength... Isn't that default policy for every country? The challenge in EU is the difficulty to align understanding of its own strength. The current way of EU organization cannot support that. ...
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@HenrikVendelbo9 months ago The topic is supposed to be european strengths, but it’s all about Germany. Other countries do fine in Software development. You also talk about big companies when we know that growth comes from smaller companies 6
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@alibajalan1574 months ago Many of the AI engineering and tech professionals immigrate out of the EU to the US and to China because of the difficult regulation and taxation in the EU on the other side the EU is not investing very well in this field and put a lot of rules ...
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@ronfischer1919 months ago I disagree with this guy completely. Europe and North America are investing in shortening their supply lines and that makes much better security sense
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@josecamacho33938 months ago It’s not about having talent in EU, it’s about attracting more talented people like Elon, Steve and hundreds of Indian CEOs as California. When we got them we know we did the right things
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@marcello42588 months ago Sap was founded last century Telekom as well not in the 19th
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@TerraIAm9 months ago Semiconductors are the industrials of the XXI century, so we should certainly invest.
Plus the person being interviewed didn't seem to be right about several things. Simple example to check: Tesla biggest fab is in the US and outside of the US is in China. ...
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@JoeGaarder9 months ago Who said that without money we can't make a business?
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@AlexKaehler-qc8kd9 months ago The EU should invest in whatever’s necessary to produce more hot chicks. Don’t end up like America and Canada. Idc if you need to ban McDonalds. You do it 4
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@ecoideazventures64179 months ago What is preventing Germany's BMW, French Dassault, Italian Ferrari to innovate and come up with the next blockbuster idea? 1
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@emteiks9 months ago Wow the last sentence about dropping on the privacy to attract more digital business really hit hard the whole reception of the video. People the privacy is paramount! Sure we can develop in digital industry but doing it at the cost of privacy is a downhill ride. ... 7
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@ronfischer1919 months ago This guy is waffling he now gets that there is strategic interest for countries to ensure there are key industries in their countries. This is a good reporter asking tough questions
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@walterbakker26909 months ago The world leader in semi conductors, by many years, is a European company, the Dutch ASML 6
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@jbbeiser9838 months ago Germanys' strength is in high-end industries and machinery that the word wants and needs, so don't start with protectionism and sanctions that will backfire
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@kyks67718 months ago Understandable should Germany be building their cloud with its own data regulatory, GDPR , V2X & digitised infra, provided it's a bottom-up enabler for both public engagement & innovation.
Supply chain is secure, whether robotics or automotive ... Capital freedom has improved, coupled with global supply distributorship, allows for all types of trades, partnerships and IP management. Offsetting costs with private collaboration for trainings & research is a strengthening factor.🌐💫 ...
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@irenekoo9 months ago SNAKE EYES is the best movie ever!
Snake eyes is my name.
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@ferittuzer46298 months ago germany should play to its strengths is exactly why the german carmakers could not switch to EVs until they saw no way out. What says Germans or Germany cannot be strong in chips? And why is it OK for him to develop software, but not to develop chips? Software is not then Germany's strength either. ...
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@shaforostoff8 months ago Having to convince Germany about importance Internet is ridiculous, LOL
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@ronfischer1919 months ago The world of global segmentation which is over we are now entering a world of global networking the same tech being built worldwide. And the labour disparity is being alleviated by automation.
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@louistan75609 months ago "Strengths"? Without mental ability, what "strengths" can there be? An excellent example is Dumkopf Scholz. Germany, the engine of Europe, is now a "Dump-hole."
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@bluelobster61009 months ago it is impossible to have europian chip manufacturer. we have come so far away
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@no_one_caress9 months ago Germany need young people to drive technology. Many big companies goes in the old elephant walking speed
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@fgpsychology8 months ago This guy has too many conflics of interest to be talking about this. We have to produce semiconductors and chips in Europe. China could invade Taiwan, Japan and south Korea will be involved and even North Korea can start armagedon. This guys just talk about regulation because of google. What a bad choice DW. ... 1
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@bsl0259 months ago Key word: subsidy. So in short, they’re coming because they can make their profit margins bigger. Impressive financial politic.
Investment in Germany: again, Germany is promising a company to give it a shitload of money and this is called investment. No. This is ripping of german taxpayers. ...
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@JigilJigil9 months ago Europeans are great at R&D, invention and achieving scientific breakthroughs, there is no doubt about that but they are also great at tech transfer to China, and appeasing authoritarian regimes for their own short term benefits. ... 4
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@Saldana1979 months ago Fragmentation serves as an impediment to Growth NOT innovation!!
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@tiro0oO59 months ago A usa old school analytic asked if the eu should be more independent of usa. 😅 … how pointless is zhis?
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@TheAcadianGuy9 months ago Does Germany has enough water for this, though?
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@nick900009 months ago Besides Germany being a disaster when it comes to digital, most of the other things the guest said, I'm highly dubious of
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@reinholdu99099 months ago The EU needs chips. Germany needs chips. - Have Not's will be punished by having NO Access ...and with so much built with and upon chips we have to build them too!
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@fcjcj7y79 months ago There won't be a lot of startups in Germany as long as you are not allowed to open a small business while still being employed
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@Azazello2439 months ago Why is this guy so obsessed with imaging and Zeiss, does he have a advertising contract 😂
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@JoseSantos-xh9mp9 months ago Liberalize labour market? The new name for workers without rights! Workers of the world, UNITE!
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@markh72889 months ago Unfortunately Germany’s car industry is now under threat. Volkswagen a company that used to be a byword in quality engineering has been damaged by recent quality issues. Germany needs to stop and fix the problems, then move on. ...
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@atix509 months ago We should push - make a point with our € too. If it's not made here when it could be we're not buying it. B*llshit about making things more expensive. Giant brands just have to accept profits are ludicrous. It's good for the environment too. At least there's some effort to manufacture responsibly and ethically here. Economic disparity and volatility in the USA and China makes us, for the moment, the consumers keeping the merry go round moving. ...
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@luisvasquez50159 months ago Europe had been beating the world until the US took that post
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@btfilther9 months ago Europe's security has now become a central problem. There are two key components that are essential for growth and security - powerful economy and powerful military to protect what you and others have invested in your economy. Currently the USA is the only one that has both. Germany can invest its talent in its weapon industry. That will boost all other areas of research and has the potential to build a EU industry network. Other areas are energy and renewables, green transition, medical equipment etc. ... 2
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@gr8john69 months ago Can you give us non-luxury German gaming laptops?
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@induchopra30149 months ago US and China are competing
Europe is sidekick
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@JoseSantos-xh9mp9 months ago A small part of the people has opportunity to have good jobs! High living cost! No social services, no hospital, no school for the poor!
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@wazzazv6149 months ago Great interview and interview. How refreshing to see a journalist who has done his research. 18
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@chillinginthefrozennorth69589 months ago Why would the EU not invest in its strengths?
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@me5ng39 months ago I actually appreciate european regulation. I do not want to end up like China or the US.
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@alfos8639 months ago No, just send all the manufacture to USA, make it great again! At the expense of others lol
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@gundleyG8 months ago Coud it be possible that the google guy is just affraid of what may happen, if germans start to be serios about the production of things USA wants to make money with?
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@frankparinco53958 months ago First of all, Europe should be independent from the US.

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