Europe’s ‘Chips Act 2.0’? In order to tackle US-China competition and fuel Europe’s green tech future, SEMI supports the former Italian PM’s recommendations for a strong chip policy.
On Monday, semiconductor industry association SEMI urged the incoming European Commission that it should adopt the recommendations outlined by Mario Draghi, the former Prime Minister of Italy to create a more unified industrial policy.
According to a report by the Reuters, SEMI emphasise the importance of launching a ‘Chips Act 2.0’ to ensure Europe remains competitive against the U.S. and China.
The industry group expressed support for Draghi’s report, issued in September. The report highlights the need for a centralised EU budget, a fast-tracked approval process for strategic high-tech projects, and increased funding to enhance the European semiconductor ecosystem beyond the initial 2023 Chips Act.
In light of the US and China imposing export restrictions on chip technology and strategic minerals, SEMI also stressed that the European Union should quickly formulate its export policy. According to the group’s statement, this policy would help safeguard the EU’s strategic interests and ensure it can assert a stronger presence on the global stage.
SEMI, one of Europe’s primary trade associations for the semiconductor industry, represents 300 members, including major companies like ASML, as well as manufacturers and research centres. The other major European industry group, ESIA, represents key chipmakers such as Infineon, STMicroelectronics, and NXP.
In a recent Reuters interview, the head of the European Semiconductor Industry Association (ESIA) called for a “Chips Act 2.0” to support legacy chip production as European manufacturers face rising competition from state-subsidized Chinese firms. SEMI echoed this, urging the EU to expand on the original Chips Act by incentivising new technologies and strengthening the semiconductor supply chain.
This, it argued, is crucial for the success of Europe’s green transition, as semiconductors play a pivotal role in advancing sustainable technologies.
