The EU's 43 billion-euro plan to boost its semiconductor industry and catch up with the U.S. and Asia is likely to be approved by EU countries and lawmakers on April 18, according to the news from Informed sources.
The global semiconductor supply chain security is facing unprecedented challenges. The European chip industry is heavily dependent on U.S. and Asian chipmakers, which has forced the EU to increase its efforts to improve its chip manufacturing capabilities.
The European Commission announced the "European Chips Act" last year, which aims to reduce the EU's dependence on semiconductors from the United States and Asia. At present, the chips produced in the EU account for less than 10% of the global share. This EU Chips Act will enable the EU to produce 20% of the world's chips by 2030, to address the problem of semiconductor shortages in Europe. This will bring together relevant resources from the EU, its member states and third countries, to establish a chip fund to ensure security of supply.
The European Chip Act has two main objectives: first, in the short term, to improve resilience to future crises by making forecasts and thus avoiding supply chain disruptions. Second, to focus on medium-term development, so that Europe can become an industry leader in this very strategic market.
The EU Chips Act also includes a mechanism for monitoring the export of chips produced in the EU, which can control chip exports in times of crisis; it emphasizes strengthening the EU's research and development capabilities in the chip field, allowing the state to support the construction of chip production facilities and support small start-ups.
The initiative will receive €1.65 billion in funding from the European Union's research program dubbed Horizon Europe for research and innovation activities, and €12.5 billion from the Digital Europe Programme for capacity building in the semiconductor industry.