Announced on 8 February, the proposed measures will “mobilise more than €43 billion of public and private investments and set measures to prevent, prepare, anticipate and swiftly respond to any future supply chains disruption, together with Member States and our international partners,” the Commission said.
The Act is designed to enable the EU to achieve its goal of increasing its current market share of global chip production from 9% to 20% by 2030.
The new industrial policy, yet to be approved by member states, includes:
- A ‘Chips for Europe Initiative” in which €11 billion (encompassing both public and private sector funds) will be made available to “strengthen existing research, development and innovation, to ensure the deployment of advanced semi-conductor tools, pilot lines for prototyping, testing and experimentation of new devices for innovative real-life applications, to train staff and to develop an in-depth understanding of the semi-conductor ecosystem and value chain.”
- A new framework to ensure security of supply by attracting investments and enhanced production capacities, much needed in order for innovation in advanced nodes, innovative and energy efficient chips to flourish. In addition, a Chips Fund will facilitate access to finance for start-ups to help them mature their innovations and attract investors. It will also include a dedicated semiconductor equity investment facility under InvestEU to support scale-ups and SMEs to ease their market expansion.
- A coordination mechanism between the Member States and the Commission for monitoring the supply of semiconductors, estimating demand and anticipating the shortages.
The European Chips Act will be a game changer for the global competitiveness of Europe‘s single market,” Commission President Ursula von der Leyen said. “In the short term, it will increase our resilience to future crises, by enabling us to anticipate and avoid supply chain disruptions. And in the mid-term, it will help make Europe an industrial leader in this strategic branch.”
“With the EU Chips Act we will strengthen our research excellence and help it move from lab to fab – from the laboratory to manufacturing,” Thierry Breton, Commissioner for Internal Market, added. “…we are putting everything in place to secure the entire supply chain and avoid future shocks to our economy like we are seeing with the current supply shortage in chips. By investing in lead markets of the future and rebalancing global supply chains, we will allow European industry to remain competitive, generate quality jobs, and cater for growing global demand.”
