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.
It‘s true. There is a good argument for some strategic riskmanagement in key-sectors. It‘s hard to say though whether it will work out and if these Chips are exactly those we will need. Also Europe should work closer together on this subject to avoid overcapacities. At the Same time a lot needs to be done to tackle the structural Problems in Germany.
Actually I agree with that, but it's NOT what most politicians are saying. I worked in the Defense industry, and the biggest issue was 2nd sourcing. We never wanted to be dependent on a single supplier. For a country, that's even more important. However, Europe is very dependent on energy, gas & oil. You can't produce what you don't have in sufficient quantities. However, we do agree on the main point!
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.
I have heard about it. I thought before that the Vietnamese people are the most resilient people in the world. Ukraine is right up with them, and besides their own problems, they still do not forget about others. This nation of brave people must be with us. I wish that Ukraine will become a major partner of Germany!
Taiwan didn’t invest anything. American companies realized it would be much cheaper to build there. The US decided that Taiwan would be a global leader in semi conductors
@@TheRockkickass TSMC was built with 48% Taiwanese public funding. Among the 52% left, most of it came from wealthy Taiwanese families. Phillips also invested and initially held 27.5% of TSMC, but most of its investment was in the form of intellectual property, only $58 million was in actual cash. Next time, try googling before typing inaccuracies.
@@lucasgssilveira Well done! Most of the developed TSMC intellectual property was domestic with little previous help from Texas Instruments' basic tech. The Hsinchu and Kaohsiung/Tainan science centers are the locus of Taiwanese tech development financed either or together by private corporations and/or the Taiwanese government.
@@jaja3359That is partially correct. It was Apple that decided to integrate TSMC into its logistics chain in Asia that made TSMC. They have tried to re-write their history in much the same way the ASML has done to try not to give US firms/ government that much credit.
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.
Sorry, but America never participated in "Globalization" that bribe was for you to side with us against the Soviet Union. Only 15% of our "Supply Chains" where outside the United States and a fully 50% of that 15% were with Mexico and Canada. So, Joseph its you that stuck not America.
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.
if by "we" you mean the russophobic West that can only view Russia as an enemy, agreed. If by "we" you mean the world in general, no, most of the world is fine with Russia. Global trade will increase and supply lines between most of the globe (that don't believe in trade-killing sanctions) will be fine. It's just the sanctions-obsessed West that will suffer, deservedly.
@@duncansmith7562 The western countries was not "Russophobic" as you put it. Opposite of what you write, western countries tried to have normal connections with Russia, but you know exactly why that part is over. Russia is not the only one with gas and oil, west already has fixed things to get the needed energy from other places. Russia is not as important as you try to convince us about.
@@oneshothunter9877 1. Despite no evidence, Russia was blamed for interference in the Brexit vote and Trump's election. Russian "disinformation" is the go-to lie the media will trumpet at the drop of a hat. NATO's expansion eastward has been a provocation since 1990. Get real. Russophobia is a media obsession. 2. "Fixed things to get needed energy from other places?" So why does energy cost SO much more today compared with pre sanctions on Russia? For working people struggling with energy bills and the inflation caused by higher energy costs, THIS IS NOT FIXED! Russia and OPEC work hand in hand to keep energy prices high, but just for for the West. you need to wake up.
The whole Europe is a resource poor place, the only reason the Europeans can become so wealthy all because of their age of colonization that brought them ability to kick start the industrial revolution, without the cheap resource and energy, Europe is nothing.
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.
Which is why Germany will slip back in the global economy and be disrupted. Theey can forget about trying to keep up with the US. Their biggest problem right now is not losing to Asia
@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!
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.
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.
Europe will go down for now you industrialize to fast so you stop having kids in the 1970's. Germany and Central Europe are full of old people now. Only France and the British have a Millennial Generation but it not enough for the whole of Europe. So Germany is moving its factories out of Europe into the United States.
the strengths come from the European people ! and their values ! . we have to be very careful about keeping those values . and thats becoming hard with such mass immigration
Ok suc*ers, write all the code first, then i will come and make my own version copying almost your entire code and include some few modifications, then I'm gonna make it private and sell it, profiting from your time and work without having to pay a penny to you. 🤟
@@FNDMA In practice it would be very easy to replace the big tech companies though. Linux was a big deal and nowadays the industry is even bigger. Whether it's Cisco network protocols and products or Amazon/Microsoft cloud computing, all of it can easily be replaced. The only reason they haven't is because of marketing but a change in the global market can flip the tables in a matter of days.
Yes this, its not about if it is 100% profitable. there are dependency within military and infrastructural needs that we don't want to use foreign computer chips. this Includes US and Chinese made chips. we also don't want to import these chips from nations that could potentially end up in war like Taiwan. This guy says Germany needs more software but software only runs on computer chips that we can buy or make.
We also need to stop being taken advantage of. China slaps European cars with a 25 percent tarrif, while Europe has only a 10 percent tarrif on Chinese cars. We also need to do something about the US digitally colonizing Europe and paying 0 taxes through Ireland.
@@ivcbusinesssystems6613 lol no ofcourse not what kind of question is that. You have your interests and we have ours. we dont always align. So its best not to have big dependency like this.
@@adineatha9766 Yes, what you say is correct.However China/USA/ Russia also have the same problems, and it would catch up to Inidia too, if they wouldn't learn from others. Obesity is not on the same proportion in each places, but asian population could develope diabetes without serious overweight, and the cost of diabetes treatment is astronomic.
@@EnteleiEchein Which skills are you talking about? Russia contributes more to China in the nuclear, space and aero techs than Europe. Europeans enter Chinese market for profit mostly. I believe why China has such interest in Russia than Europe. Bad European history in China as well.
@@youme1414 I think he meant the EU market being open to China for their early growth, as for tech there really wasn't anything they gave the Chinese that the Chinese couldn't simply steal or buy from Europe
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.
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.
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.
This guy has too many conflics of interest to be talking about 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.
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.
This guy is a greengo tru and tru. His emphasis on deregulation is laughable and is the reason why europe and usa are not competitive. Regulation globably will give usa manufacture a clear advantage but they prefer larger profit than better local markets. De regulation only benefits the rich.
@@kwalelalipimile3894 China is cheap for a reason. Google when they managed to develope the technology to make those ball bearing that go in ballpoint pens.
@@wakey87 does it matter? Did you use a ball point pen today? No one country is self sustainable in production. My point you seem to be glossing over is Raw materials and market size.
An interesting post, but I believe your premise isn't quite correct. Firstly, the pundit does not state for no-governmental intervention. He suggests a liberalization of relaxing of regulations. Secondly, no matter how far Europe goes with this relaxing of regulation, by its' nature, it will always be more regulated than it is in the US - due to cultural, political, and economic differences between the two continents and within Europe itself. Lastly, regarding your last paragraph, while I agree that different points of view are essential in a conversation, every argument doesn't always need to have a counterargument lingering to butt in. That would be akin to the overregulation that is being discussed. 😉
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.
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.
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
"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.
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.
Not only you, it was rather infuriating to watch this interview as so called expert is missing the point entirely on purpose or has no understanding of geopolitics...
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 will need a major overhaul as well as find vendors that will give them prices that won't make their finished chemicals cost prohibitive.
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.
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.
“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.”
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.
Specially in terms of energy, being dependent on Russia was a big mistake. And our dependence on China is problematic, we have been helping a monster to grow. German machinery was very good but sadly some of it has moved to China. And the ones produced in China are of poor quality
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
Yeah they mentioned Germany, France, and Finland, but they never seem to mention the less developed European economies. I would like to hear about the possibilities for growth in those areas, even places such as Poland or Romania, or the lagging countries such as Bulgaria.
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.
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
To be precise ASML manufactures equipment for producing chips. These are different things. It is absolutely possible to produce expensive, sophisticated machinery in Europe. But whether companies in Europe can produce chips with competitive edge is an open question question. I have got doubts about this. So far they have not been able to produce them.
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
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.
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.
the last thing you should do in a recession is regulate companies more/do more social spending. Germany built its economy on cheap russian gas and if it doesnt diversify FAST it will collapse.
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
Germany has been doing a lot more then what has been said here. It's going to become a powerhouse in terms of digital and technology. There's a lot more going on closed doors and we see them in terms of companies, projects and people
John - So you have been behind those closed doors? Germany has let itself down by joining the Western corrupt warmongers and shitting on Russia. Hope they are totally deindustrialised and trashed by a dying US empire.
No doubt Germany is abundantly talented but its weaknesses hamper their success - for example depsite knowing the Risks of Russia - Germany's strategic policies has facilitated the war in Ukraineand its energy problems of today. Germany needs to get better fast or get beat!! Mini the weakness and fuel the strengh
@zuzanazuscinova5209 ohh such genius suggestions, attack a country who has nuclear weapon, and likely drag NATO and the US into the war create WWIII, 👏 bravo? 😂
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.
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
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.
"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."
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!
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.
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.
Europa is lacking behind US. Market cap of one single car manufacturer of US(Tesla) is 3 times more than ALL the German cars and trucks.. This is unbelievable but it is the end of discussion.. All the bright minds(including German themselves) are queuing in order to get a work permit in US. Whereas a very few qualified people choose Germany or Sweden to migrate to..
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.
It‘s true. There is a good argument for some strategic riskmanagement in key-sectors.
It‘s hard to say though whether it will work out and if these Chips are exactly those we will need. Also Europe should work closer together on this subject to avoid overcapacities.
At the Same time a lot needs to be done to tackle the structural Problems in Germany.
Actually I agree with that, but it's NOT what most politicians are saying. I worked in the Defense industry, and the biggest issue was 2nd sourcing.
We never wanted to be dependent on a single supplier. For a country, that's even more important.
However, Europe is very dependent on energy, gas & oil. You can't produce what you don't have in sufficient quantities.
However, we do agree on the main point!
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.
🤗🤗🤗🤗🤗 Bring Ukraine to the EU! NOW!!!
Ukraine is the doom of eu. 😂
Hope you relief from it soon.
@@kth6736you misspelled "boon"
🇷🇺 = 💀
I have heard about it.
I thought before that the Vietnamese people are the most resilient people in the world. Ukraine is right up with them, and besides their own problems, they still do not forget about others.
This nation of brave people must be with us. I wish that Ukraine will become a major partner of Germany!
Once upon a time Taiwan wasn't strong in chip manufacturing either. They invested on it and are now world leaders in that sector.
Taiwan didn’t invest anything. American companies realized it would be much cheaper to build there. The US decided that Taiwan would be a global leader in semi conductors
@@TheRockkickassNah lol
TSMC is not built by the Americans, they might have supported it but werent the architects
@@TheRockkickass TSMC was built with 48% Taiwanese public funding. Among the 52% left, most of it came from wealthy Taiwanese families. Phillips also invested and initially held 27.5% of TSMC, but most of its investment was in the form of intellectual property, only $58 million was in actual cash. Next time, try googling before typing inaccuracies.
@@lucasgssilveira Well done! Most of the developed TSMC intellectual property was domestic with little previous help from Texas Instruments' basic tech. The Hsinchu and Kaohsiung/Tainan science centers are the locus of Taiwanese tech development financed either or together by private corporations and/or the Taiwanese government.
@@jaja3359That is partially correct. It was Apple that decided to integrate TSMC into its logistics chain in Asia that made TSMC. They have tried to re-write their history in much the same way the ASML has done to try not to give US firms/ government that much credit.
You don't know how big the ocean is while you're swimming in it
Bottom line: de-regulate. The opposite of what the EU Commission is going to do.
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.
Sorry, but America never participated in "Globalization" that bribe was for you to side with us against the Soviet Union. Only 15% of our "Supply Chains" where outside the United States and a fully 50% of that 15% were with Mexico and Canada. So, Joseph its you that stuck not America.
Turning a country into an island is a huge mistake.
Second mistake... Saying NO to cheap energy?
It's not cheap when you are held to ransom by a totalitarian state. Never is. Ever. Eventually the full price is paid. They call it fools gold. 😂🤣🤪
All the IP rights Europe HAD, are already learned and surpassed by China.
You are not competitive anymore europeans.
You are too lazy for competition.
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.
if by "we" you mean the russophobic West that can only view Russia as an enemy, agreed.
If by "we" you mean the world in general, no, most of the world is fine with Russia.
Global trade will increase and supply lines between most of the globe (that don't believe in trade-killing sanctions) will be fine.
It's just the sanctions-obsessed West that will suffer, deservedly.
@@duncansmith7562 Russian troll at work even on Saturday
@@duncansmith7562
The western countries was not "Russophobic" as you put it.
Opposite of what you write, western countries tried to have normal connections with Russia, but you know exactly why that part is over.
Russia is not the only one with gas and oil, west already has fixed things to get the needed energy from other places.
Russia is not as important as you try to convince us about.
@@oneshothunter9877 1. Despite no evidence, Russia was blamed for interference in the Brexit vote and Trump's election. Russian "disinformation" is the go-to lie the media will trumpet at the drop of a hat. NATO's expansion eastward has been a provocation since 1990. Get real. Russophobia is a media obsession.
2. "Fixed things to get needed energy from other places?"
So why does energy cost SO much more today compared with pre sanctions on Russia? For working people struggling with energy bills and the inflation caused by higher energy costs, THIS IS NOT FIXED!
Russia and OPEC work hand in hand to keep energy prices high, but just for for the West.
you need to wake up.
The whole Europe is a resource poor place, the only reason the Europeans can become so wealthy all because of their age of colonization that brought them ability to kick start the industrial revolution, without the cheap resource and energy, Europe is nothing.
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.
Which is why Germany will slip back in the global economy and be disrupted. Theey can forget about trying to keep up with the US. Their biggest problem right now is not losing to Asia
@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!
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.
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.
Europe will go down for now you industrialize to fast so you stop having kids in the 1970's. Germany and Central Europe are full of old people now. Only France and the British have a Millennial Generation but it not enough for the whole of Europe. So Germany is moving its factories out of Europe into the United States.
Nice idea, on paper
the strengths come from the European people ! and their values ! . we have to be very careful about keeping those values . and thats becoming hard with such mass immigration
Ok suc*ers, write all the code first, then i will come and make my own version copying almost your entire code and include some few modifications, then I'm gonna make it private and sell it, profiting from your time and work without having to pay a penny to you. 🤟
@@FNDMA In practice it would be very easy to replace the big tech companies though. Linux was a big deal and nowadays the industry is even bigger. Whether it's Cisco network protocols and products or Amazon/Microsoft cloud computing, all of it can easily be replaced. The only reason they haven't is because of marketing but a change in the global market can flip the tables in a matter of days.
We just need a baseload of chipproduction in Europe for our own security
tsmc is coming and maybe intel too
Yes this, its not about if it is 100% profitable. there are dependency within military and infrastructural needs that we don't want to use foreign computer chips. this Includes US and Chinese made chips. we also don't want to import these chips from nations that could potentially end up in war like Taiwan. This guy says Germany needs more software but software only runs on computer chips that we can buy or make.
We also need to stop being taken advantage of. China slaps European cars with a 25 percent tarrif, while Europe has only a 10 percent tarrif on Chinese cars. We also need to do something about the US digitally colonizing Europe and paying 0 taxes through Ireland.
Don't you trust America?
@@ivcbusinesssystems6613 lol no ofcourse not what kind of question is that. You have your interests and we have ours. we dont always align. So its best not to have big dependency like this.
Europe helped build China economy along with America, so, of course, Europe can compete.
Europe is dependent on China too which is still growing at 5% per annum while Europe is suffering stagnation
Europe is suffering from low birthrates, obesity, laziness and an elderly population.
In some countries the majority population is like 60+.
@@adineatha9766 Yes, what you say is correct.However China/USA/ Russia also have the same problems, and it would catch up to Inidia too, if they wouldn't learn from others. Obesity is not on the same proportion in each places, but asian population could develope diabetes without serious overweight, and the cost of diabetes treatment is astronomic.
@@EnteleiEchein Which skills are you talking about? Russia contributes more to China in the nuclear, space and aero techs than Europe. Europeans enter Chinese market for profit mostly. I believe why China has such interest in Russia than Europe. Bad European history in China as well.
@@youme1414 I think he meant the EU market being open to China for their early growth, as for tech there really wasn't anything they gave the Chinese that the Chinese couldn't simply steal or buy from Europe
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.
Germany is buying market production rather than finding it. That has never worked anywhere in the world.
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.
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.
Street view was also blocked in Germany only, yet this guy says it was blocked in Europe.
Where will Europe get the raw materials from? It is easier said than done.
Probably go steal from African countries
Crazy how voluntary sales are stealing now@@alicecampbell-by3yv
I would love to see the investment coming from EU and not Germany. Its in the interest of the entire union.
This guy has too many conflics of interest to be talking about 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.
Great interview and interview. How refreshing to see a journalist who has done his research.
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.
This guy is a greengo tru and tru. His emphasis on deregulation is laughable and is the reason why europe and usa are not competitive. Regulation globably will give usa manufacture a clear advantage but they prefer larger profit than better local markets.
De regulation only benefits the rich.
And who would Europe's Market be? Count out Asia and Africa, China is a cheaper source. Maybe even South America that's like 5 BILLION customers
@@kwalelalipimile3894 China is cheap for a reason. Google when they managed to develope the technology to make those ball bearing that go in ballpoint pens.
@@wakey87 does it matter? Did you use a ball point pen today? No one country is self sustainable in production. My point you seem to be glossing over is Raw materials and market size.
An interesting post, but I believe your premise isn't quite correct. Firstly, the pundit does not state for no-governmental intervention. He suggests a liberalization of relaxing of regulations. Secondly, no matter how far Europe goes with this relaxing of regulation, by its' nature, it will always be more regulated than it is in the US - due to cultural, political, and economic differences between the two continents and within Europe itself. Lastly, regarding your last paragraph, while I agree that different points of view are essential in a conversation, every argument doesn't always need to have a counterargument lingering to butt in. That would be akin to the overregulation that is being discussed. 😉
Great interviewer, he asked smart challenging questions and didn't let the guest make wild claims.
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.
Sap was founded last century Telekom as well not in the 19th
Woow. Chips are strategically essential therefore great move … there’s more than dividens…
Germany first of all needs stable internet connection.
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.
I usually choose European tech providers, e.g. Protonmail, Hetzner because of privacy policies in Europe.
Very good interviewer. And very interesting exchange.
Europe should focus on Automobile Industry rather than chips.
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
7:30 Characterizing privacy as an obsession isn't a good look these days.
"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.
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.
Not only you, it was rather infuriating to watch this interview as so called expert is missing the point entirely on purpose or has no understanding of geopolitics...
Europe will be fine.
yes its fine. *the house burning in the background
Europe is screwed.
@@psnaris really? How?
What a load of tosh. "Europe will be fine" DAY DREAMER
@@protagonist9716 of course Europe will be fine. Is there a better place in the world to invest right now?
1 important fact is, that Europe is the coolest continent.
So the future will be good.
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 will need a major overhaul as well as find vendors that will give them prices that won't make their finished chemicals cost prohibitive.
With the euro dropping again so hard I don’t think people should invest in Germany
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.
I disagree with this guy completely. Europe and North America are investing in shortening their supply lines and that makes much better security sense
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.
“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.”
Very interesting interview, thanks!
the interview confused EU with Germany for a big chunk of the interview
USA compelled TSMC to invest in USA making no competitive chips in market.
What is preventing Germany's BMW, French Dassault, Italian Ferrari to innovate and come up with the next blockbuster idea?
Low birthrates, obesity, laziness and an elderly population.
Aversion to risk
Perhaps they can come up with air-powered vehicle. That is a good innovation to me. Hehehe...
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.
The West should be self-sufficient, but it is a bit more expensive. Other regions can enjoy the benefits of international division of labor.
It is not going to be possible. There is no European Operating system in the level of USA and China, software giant, etc.
Specially in terms of energy, being dependent on Russia was a big mistake. And our dependence on China is problematic, we have been helping a monster to grow. German machinery was very good but sadly some of it has moved to China. And the ones produced in China are of poor quality
Selling Kuka robotics to China, then giving away billions to tsmc. Can anyone explain how this make sense?
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
Yeah they mentioned Germany, France, and Finland, but they never seem to mention the less developed European economies. I would like to hear about the possibilities for growth in those areas, even places such as Poland or Romania, or the lagging countries such as Bulgaria.
It´s a german state channel...@@FreshTuna
it is impossible to have europian chip manufacturer. we have come so far away
SNAKE EYES is the best movie ever!
Snake eyes is my name.
Go Europa !!!
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.
Fragmentation serves as an impediment to Growth NOT innovation!!
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
Obesity, low birthrates and an elderly population is already a problem in Europe.
Started 10 years ago.
Especially in the UK. Almost like America. Although, there’s still hope elsewhere.
The world leader in semi conductors, by many years, is a European company, the Dutch ASML
Yes, let Europe bask in the past.
@@youme1414 it is not the past, the Chinese stole their tech... but they are now again in the forefront.
To be precise ASML manufactures equipment for producing chips. These are different things. It is absolutely possible to produce expensive, sophisticated machinery in Europe. But whether companies in Europe can produce chips with competitive edge is an open question question. I have got doubts about this. So far they have not been able to produce them.
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
I'm sure Europe is investing a lot in its core strength - cultural diversity!
Not making it in China makes the world a better place...
Make it in India
Let's India manufacture for their Russian friends, not Europe..
You spelt Europe wrong, you can hardly speak for the world that you know little of much less know of
Not making in the USA should make the world a better place
Unfortunately its not something you can decide,finish your beer,next cup will be more expensive
Heading EU, Talks Germany
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.
Who said that without money we can't make a business?
First of all, Europe should be independent from the US.
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.
the last thing you should do in a recession is regulate companies more/do more social spending. Germany built its economy on cheap russian gas and if it doesnt diversify FAST it will collapse.
Yes, the return of analog.
Obsession with privacy he said :D
Does Germany has enough water for this, though?
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
seriously?
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
Germany has been doing a lot more then what has been said here. It's going to become a powerhouse in terms of digital and technology. There's a lot more going on closed doors and we see them in terms of companies, projects and people
John - So you have been behind those closed doors? Germany has let itself down by joining the Western corrupt warmongers and shitting on Russia. Hope they are totally deindustrialised and trashed by a dying US empire.
No doubt Germany is abundantly talented but its weaknesses hamper their success - for example depsite knowing the Risks of Russia - Germany's strategic policies has facilitated the war in Ukraineand its energy problems of today. Germany needs to get better fast or get beat!! Mini the weakness and fuel the strengh
@Saldana197 do you have any suggestions for Germany to get cheap energy from?
@@eveleung8855Russia. They need to fight them and take over their resources.
@zuzanazuscinova5209 ohh such genius suggestions, attack a country who has nuclear weapon, and likely drag NATO and the US into the war create WWIII, 👏 bravo? 😂
The public does not want AI.
The journalist is gooood 👍
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.
Having to convince Germany about importance Internet is ridiculous, LOL
US and China are competing
Europe is sidekick
Europe had been beating the world until the US took that post
Besides Germany being a disaster when it comes to digital, most of the other things the guest said, I'm highly dubious of
Liberalize labour market? The new name for workers without rights! Workers of the world, UNITE!
EU strengths are diversity, equity and inclusion, invest here
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
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.
Can you give us non-luxury German gaming laptops?
"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."
Worker and job protection is also a strength. Want a productive workforce? Invest in it. How is China doing on this?
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!
Obsesion with privacy. 😂 hahahhaa
What does that mean? Obsession for what? Explain.
no streatview no credit card just cash@@peramoredellanalisi4341
The world is changing and Europe needs to change with it, simple as that. 🧐
Europe needs to start making babies again. Majority of the population is 60+
A usa old school analytic asked if the eu should be more independent of usa. 😅 … how pointless is zhis?
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.
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.
America doesnt allow EU to lead
Europe beats the world on taxes
Yeah for the ppl
US for big companies
Taiwan, a democracy. Lol.
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!
Great! Germany and Europe need chips. Who knows what the conflict between Taiwan and China is going to look like.
Why is this guy so obsessed with imaging and Zeiss, does he have a advertising contract 😂
Europa is lacking behind US. Market cap of one single car manufacturer of US(Tesla) is 3 times more than ALL the German cars and trucks.. This is unbelievable but it is the end of discussion.. All the bright minds(including German themselves) are queuing in order to get a work permit in US. Whereas a very few qualified people choose Germany or Sweden to migrate to..
Recession is all I hear 🙉