The Council gave its final approval to the Chips Act. The new regulation aims at doubling the EU’s global market share in semiconductors from 10% to at least 20% by 2030.
Chips are essential for a wide range of technological and digital products, such as cars, household appliances and electronics. The EU Chips Act aims at boosting the ecosystem for semiconductors in Europe.
What are semiconductors?
(Micro-)chips or semiconductors are the DNA of modern technology.
They are used:
- in everyday life: smartphones, laptops, credit cards, game consoles, microwaves
- for critical applications: cars, planes, medical diagnostic equipment
- for key infrastructures: energy, defence, mobility, data and communication
They are essential for tomorrow’s economy and for our green and digital transformations in sectors such as:
- clean energy
- internet of things
- artificial intelligence
- high-performance computing platforms
Chips demand is expected to double between 2022 and 2030.
The semiconductor industry is estimated to be worth USD 640 billion in 2022.
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What is the European Chips Act?
The European Chips Act establishes a framework of measures to strengthen Europe’s semiconductor ecosystem.
The Chips Act is based on three pillars:
- the ‘Chips for Europe Initiative‘ that supports large-scale technological capacity building and innovation
- a framework that ensures security of supply and resilience by attracting increased investment
- a monitoring and crisis response system that will anticipate shortages and coordinate actions in crisis situations
The Chips for Europe Initiative is expected to mobilise EUR 43 billion in public and private investments, with EUR 3.3 billion coming from the European budget.
What are the goals of the European Chips Act?
With this regulation, the EU aims to:
- address the shortage of microchips in Europe
- reduce dependency on foreign actors
- improve technological sovereignty
The objective is to double the EU’s global market share in semiconductors by 2030. At least 20 % global market share by 2030.
The new rules will also reinforce the industrial base for chips, allow for the better exploitation of future business opportunities and create good-quality jobs.
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