The strategic move aims to double the EU’s chip market share by 2030, reducing foreign dependencies.
The European Union (EU) has finally approved a colossal $47.5 billion incentive plan, geared towards stimulating the semiconductor industry. The initiative aims to double the EU’s semiconductor industry market share to 20 percent by 2030, reducing dependency on imports and ensuring a more resilient supply chain.
Following months of deliberation, the EU’s new CHIPS act sets out to attract more investment and stimulate research and development in the region. Hector Gomez Hernandez, Spanish Minister for Industry, Trade, and Tourism, commented, “In the long run, this will also contribute to the renaissance of our industry and the reduction of our foreign dependencies.”
The EU’s commitment comes as a response to its earlier ambitions of becoming a semiconductor powerhouse. Notably, the American semiconductor giant, Intel, has already embarked on constructing a new facility within the EU. This decision also appears as a counter-move against the USA’s $52 billion “CHIPS and Science Act”, with the Biden administration pouring $39 billion incentives to lure chip manufacturers to U.S. shores.
Having gained approval from the Council of the European Union, the Chips Act awaits signatures from the European Parliament President and the Council President. After this, its official publication will mark the final step before it takes effect. Experts highlight the EU’s increasing chip dependence on foreign entities, a vulnerability starkly exposed during the COVID-19 pandemic. This over-reliance has affected critical sectors, including health, defense, and energy.
The council’s statement encapsulates the strategic objective behind this act: “The Chips Act aims to reduce the EU’s vulnerabilities and foreign dependencies, fortifying our industrial base for chips. This will bolster EU’s supply security, resilience, and tech sovereignty in the chip sector.”
