Chips Act: Council and European Parliament strike a provisional deal!
The Council and the Parliament reached a political agreement on the Chips Act. The new rules aim at doubling the EU’s global market share in semiconductors from 10% to at least 20% by 2030.
The European Commission proposed the Chips Act in February 2022, when a global shortage of semiconductors had stopped producing many goods with electronic components, from cars to PlayStations.
The bloc's Swedish presidency announced: "The Chips Act will boost the European ecosystem for semiconductors and play a vital part in strengthening the EU's competitiveness at the global level".
Following the economic fallout of the COVID-19 pandemic, which caused supply chain shocks that resulted in significant shortages, the European Union prioritized ending its dependency on US and East Asian chips by fostering local chip production.
The Council and the European Parliament have reached a provisional political agreement on the regulation to strengthen Europe's semiconductor ecosystem, better known as the 'Chips Act'. By 2030, it is anticipated that the agreement will have created the conditions for the growth of an industrial base that will enable the EU to double its market share in semiconductors from 10% to at least 20%.
The European Commission proposed a Chips for Europe Initiative which is expected to mobilize €43 billion in public and private investments, with €3,3 billion coming from the EU budget. Furthermore, a new semiconductor objective within the Digital Europe Programme will support capacity building in the Chips sector. Funds are also mobilised within the research framework Horizon Europe, amounting to a total of €3.3 billion for the ‘Chips for Europe Initiative’.
"This agreement is of utmost importance for the green and digital transition while securing the EU’s resilience in turbulent times. The new rules represent a real revolution for Europe in the key sector of semiconductors. A swift implementation of today’s agreement will transform our dependency into market leadership; our vulnerability into sovereignty; our expenditure into investment," says
Ebba Busch (Swedish Minister for Energy, Business and Industry and Deputy Prime Minister).
Why the European Chips Act?
Not only the European Chips Act will allow for a competitive chips industry and build the foundation for a global market share. It will also power a clean tech industry made in Europe and strengthen Europe’s digital resilience and sovereignty.
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Check out our previous news on the Chips Act