FT announced that the EU is preparing emergency measures in case of a shortage of semiconductors

The European Union (EU) is preparing for a possible large-scale intervention in the semiconductor supply chain amid their shortage, including forcing chip manufacturers to terminate the current contract. This was reported on May 29 by the Financial Times (FT) newspaper.

The article notes that the developed document is called the "Law on Chips" and assumes an unprecedented expansion of the powers of the European Commission (EC) in the control of the manufacturing industry.

The publication reports that in the event of a crisis, the EC will have the right to force factories to prioritize orders for products critical to Europe, introduce a system of joint purchases, and also collect fines from companies that conceal information about their supply chains.

It is clarified that such measures were developed due to the EU's fear of suffering from economic coercion due to the conflict between the United States and China.

Raw material deposit: Europe will have to buy gas at inflated prices for at least six months

Why the fuel crisis won't end quickly and what will happen next with quotes

European Commissioner for Energy Dan Jorgensen said on May 13 that Europe had overpaid €35 billion for energy since the start of the war in the Middle East. He noted that the European Union, despite the diversification of energy supply chains and other measures taken, is still vulnerable to such economic shocks.

The La Tribune newspaper on May 15 suggested that Europe could face a shortage of medicines due to the blockade of the Strait of Hormuz amid the escalation of the situation around Iran. According to the publication, the supply of components for the pharmaceutical industry depends on China and India for 80%.

Russian Foreign Minister Sergei Lavrov said on May 13 that US policy was leading Europe into a deep energy and food crisis. The diplomat noted that Europe could be one of the most affected parties in the event of a prolonged crisis in the Strait of Hormuz.