(Bloomberg) --

Governments need to fully commit to a European Union plan to increase the bloc’s share of global semiconductor production to 20% by 2030, Prime Minister Mario Draghi told lawmakers in Rome on Wednesday.

“In order to make the ecological transition, in order to make the digital transition, there are no alternatives to state intervention,” Draghi said, noting that subsidies from China and the U.S. range from 30% to 60% of the cost of a semiconductor plant.

Draghi said his government will support “with conviction” a proposed European Commission measure to coordinate investments and production of microchips and integration of circuits.

Read more: European Commission Announces Semiconductor Alliances

The Commission last month announced industrial alliances for semiconductor and cloud technologies to help spur innovation, and digital policy chief Margrethe Vestager has said the EU should avoid relying on a handful of “very big” chip producers.

Many European leaders have called for investment to alleviate a supply shortage that’s rippled through a number of industries. At the same time, companies like California-based Intel Corp. have been attempting to build European support for increased local capacity. 


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