Shortages in microchips, also called semiconductors, have caused a major security headache for governments, with microchips being crucial for transport networks and defense systems. Now the European Union has struck a deal that would boost production of semiconductors and help the EU break its reliance on suppliers in other countries. Prior shortages were largely attributed to supply issues linked to COVID-19. Factories in Taiwan and China making the chips have re-opened but the backlog remains significant.

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