EU Adopts Chips Act to Boost Semiconductor Industry

The EU has “massively adopted” the Chips Act, legislation aimed at boosting the EU’s semiconductor industry amid growing tension with China.

Semiconductors have increasingly become an issue of national security, with many Western nations worried about China’s influence in the tech industry. Some, such as the US and Netherlands, have taken steps to restrict China’s access to advanced chip technology.

The Chips Act is designed to increase semiconductor investment in the EU in an effort to help the bloc become more independent for its semiconductor needs.

The new law, already agreed upon between Parliament and Council, aims to create a favourable environment for chip investments in Europe, by fast tracking permitting procedures and recognising their critical importance via a so-called “highest national significance statute”. Small and medium-sized businesses will also benefit from increased support, especially in the area of chip design, in order to boost innovation.

The legislation will support projects that boost the EU’s security of supply by attracting investment and building up production capacity. During the talks with the representatives of the Council, MEPs secured €3.3 billion for research and innovation related to chips. A network of competence centres will be created to address the EU’s skills shortage and attract new talent for research, design and production.

Thierry Breton, Internal Market Commissioner, praised the passage of the Chips Act on Twitter:

Chips Act massively adopted! 

The EU #ChipsAct will be an instrument of technological and industrial leadership for Europe 

There is no industrial policy without #factories and without #semiconductors.

EU is back!

Thierry Breton (@Thierry Breton) — July 11, 2023

Other EU lawmakers had similarly high praise for the bill’s passage:

“With the European Chips Act, we aim to strengthen the EU’s position in the global semiconductor landscape and to address the vulnerabilities in supply chains exposed by the pandemic,” said Rapporteur Dan Nica (S&D, RO). “We want to have more influence and to be leaders, so we have secured €3.3 billion for research and innovation. We aim to boost technological capacity, and are implementing measures to combat potential shortages. Europe is prepared to face the future challenges in the semiconductor industry, prioritising strategic autonomy, security, and a favourable business environment.”