Industry groups push for EU Chips Act 2.0

Two semiconductor industry groups, the European Semiconductor Industry Association (ESIA) and the European arm of the US SEMI trade association, have come together to advocate for a second version of the European Chips Act. In a recent round table with members of the European Parliament (MEPs), they emphasized the need for an improved Act to support European chip makers and designs. ESIA Vice-President Frédérique Le Grevès outlined three key priorities for the sector: a clear European semiconductor strategy, a revised Chips Act with streamlined administrative procedures, and a focus on trade policies to enhance resilience and foster innovation.

The MEPs echoed these sentiments by signing a joint declaration to Henna Virkkunen, the European Commission’s Executive Vice President for Tech Sovereignty, Security, and Democracy. They called for an ambitious follow-up to the Chips Act, which would involve allocating new research and development (R&D) funds, attracting investments, and boosting European competitiveness in the semiconductor industry.

As the US winds down its investments in the Chips Act and even retracts some funding, the focus in Europe is on strengthening the semiconductor ecosystem. Laith Altimime, President of SEMI Europe, highlighted the urgent need to enhance technological capabilities and drive innovation across Europe. The ongoing rollout of six pilot lines for semiconductor technologies under the Chips Joint Undertaking (JU) is a significant step in this direction.

One of the key initiatives within the JU is the FAMES project, which has issued an open call for participants to collaborate on 10nm and 7nm FD-SOI low power process technology. Additionally, efforts are underway to establish pilot lines for 1nm process technology, with Imec in Belgium leading the way. These developments aim to position Europe at the forefront of semiconductor innovation and manufacturing.

The European Commission has earmarked over €43 billion in policy-driven investments to support the Chips Act until 2030, with a focus on next-generation technologies and infrastructure. This funding, primarily channeled through the Horizon Europe and Digital Europe programmes, is expected to attract substantial private investment. The Commission is also working to create a conducive environment for semiconductor manufacturing in Europe, with recent investments from companies like TSMC and ChipFlow indicating a growing interest in establishing operations on the continent.