In the last 40 years, Europe has not even managed to grab 15 percent of the global share in the semiconductor industry.
In an effort to win the global semiconductor chip rate-race, Europe’s major chip industry body, the European Semiconductor Industry Association (ESIA) has now urged the European Union to accelerate the investment so that the revamped Chips Act 2.0 could be launched soon.
In a press statement, the industry body added that European chip policy backed by the EU commission should work on a couple of important areas such as lowering the export sanctions, more attention must be given on those areas where the European companies are already powerful, and subsidies/awards must be provided quickly to boost the industry.
“A dedicated ‘Chips Envoy’ responsible for the overall industrial policy approach to semiconductors is a necessity,” it said. The European semiconductor firms such as Infineon, STMicroelectronics, NXP and ASML have requested an immediate Chips Act 2.0.
After several rounds of discussions, the first Chips Act in Europe was announced officially in 2023 equipped with a 43 billion euro subsidy plan, which is intended to augment Europe’s global semiconductor market share to 20 percent by 2030. Speaking about the growth potential, a couple of international chip experts and a German think-tank revealed that the aim set by the EU is going to be an intricate task because in the last 40 years, Europe has not even managed to grab 15 percent of the share internationally.
Some of the important ventures targeted under the first Chips Act include a 10 billion euro ($11 billion) semiconductor chip unit planned by TSMC in Dresden and a 30 billion euro project by Intel in Germany. However, Intel’s application is yet to be approved by the EU and is delayed beyond expectations.
