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More Chips, Anyone? Demand for Semiconductors in an Era of Active Industrial Policy

Author

Listed:
  • Dorothee Hillrichs
  • Anita Wölfl

Abstract

Key Messages:Semiconductor supply is subject of sizable subsidy schemes in the US, the EU, China, Japan, Korea, and IndiaChip imports are concentrated in few countries, with the EU accounting for less than 5 percent of worldwide chip salesChips are highly heterogeneous products that serve different functions and are tailored to end-use applicationsDemand growth for chips varies by region and chip type, pointing to technological change as a key driverEven with subsidies, firms only have an incentive to invest in chips for which they are competitive and can expect long-term demand

Suggested Citation

  • Dorothee Hillrichs & Anita Wölfl, 2026. "More Chips, Anyone? Demand for Semiconductors in an Era of Active Industrial Policy," EconPol Forum, CESifo, vol. 27(01), pages 35-42, January.
    • Handle: RePEc:ces:epofor:v:27:y:2026:i:01:p:35-42
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    References listed on IDEAS

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