Warning that broad policies could harm European firms and impede research; SEMI Europe has recommended the European Union to reduce restrictions on outbound investments in foreign semiconductor technology.
On Monday, semiconductor industry group SEMI Europe urged the European Union to minimise restrictions on outbound investment by companies within the bloc in foreign computer chip technology.
In a recent paper, SEMI Europe emphasised that European semiconductor companies need maximum freedom in their investment decisions to maintain their agility and relevance. The organisation warned that overly restrictive policies could undermine this flexibility.
Proposals to regulate outbound investments, such as European funding in foreign semiconductor, AI, and biotechnology firms, are under review, but no EU decision is anticipated before 2025.
The organisation urged the European Commission to refine these proposals to avoid impeding European multinational companies’ ability to make crucial investments for their operations.
The paper also criticised the EU’s proposed policies, suggesting they are too broad and could compel companies to reveal sensitive business information. SEMI Europe stated that restrictions on cross-border research collaboration would be counterproductive.
SEMI Europe, which represents around 300 semiconductor firms and institutions in Europe—including ASML, ASM, Infineon, STMicroelectronics, NXP, and research centres like imec, CEA-Leti, and Fraunhofer—supports these recommendations.
In addition to outbound investment screening, the EU is considering a law to review inbound foreign investments that may pose security risks, such as acquisitions of European ports, nuclear facilities, and sensitive technologies.
Meanwhile, the U.S. is drafting rules to ban certain investments in China to safeguard national security and prevent American technology from aiding China’s tech advancements and market dominance.
