Computer chip manufacturers and semiconductor supply chain firms have urged the European Commission to initiate a follow-up to the 2023 Chips Act that emphasizes chip design, materials, and equipment alongside manufacturing.
The initial EU Chips Act catalyzed significant investment in manufacturing, but to attract cutting-edge chipmakers and address the broader supply chain, EU approval for projects has been criticized as too slow despite most funding coming from member states. Nonetheless, European companies view it as a necessary counterbalance to more extensive state support programs in the U.S. and China.
Following a meeting in Brussels with leading sector firms and European lawmakers, industry groups ESIA, which represents chipmakers, and SEMI Europe, which encompasses the wider industry, expressed their intention to propose a 'Chips Act 2.0' to Commission digital chief Henna Virkkunen.
SEMI stated that a new program should "decisively support semiconductor design and manufacturing, R&D, materials, and equipment."
European Parliament Member Oliver Schenk emphasized the need for subsidies for suppliers to bolster the overall industry, noting, "In Taiwan, you see companies like BASF producing alongside TSMC, but you won’t find them here in Europe."
Among the firms represented at the meeting were prominent chipmakers NXP, STMicroelectronics, Infineon, and Bosch, along with equipment manufacturers ASML, ASM, Zeiss, and Air Liquide.
Although the Commission has not yet outlined its plans for the semiconductor sector, it has indicated intentions to launch five initiatives this year aimed at stimulating European investment, particularly in AI.
Last week, a coalition of nine European countries announced their intention to collaborate with the Commission to further strengthen Europe’s chip industry.