Semiconductor Coalition Calls for Stronger EU Chips Act

All member states in the European Union have joined a Dutch-led coalition lobbying for changes to the Chips Act. They are calling for a bigger focus on a strengthened ecosystem, investment, and international partnerships.

The Semicon Coalition, formed in March by the Netherlands and eight member states, now has backing from all 27 members in addition to 50 industry groups and companies, including Nvidia, ASML, and STMicroelectronics. In a statement, the group announced it had signed a declaration to underscore the urgent need for a revised and forward-looking EU Chips Act 2.0, which was handed over to the European Commission.

The declaration centres on five points which have been agreed on by all the member states involved: for a revised Chips Act to strengthen the semiconductor ecosystem through partnerships between industry, SMEs, and start-ups; alignment of EU and national funding to accelerate strategic projects and mobilise private capital; enhance skills in new technologies; promote sustainability; and partner with like-minded global countries. EU ministers agreed that Europe’s industrial strategy should adapt to the increasing geopolitical tensions in the world.

The EU Chips Act was approved by member states in July 2023, with a pot of around €43 billion to boost the region’s position in the global semiconductor market. The EU stated it wanted to achieve 20% of the global chip output by 2030. However, in late March, a European Court of Auditors stated the goal would not be achievable given the current state of the market, projecting Europe would hold around 11.7% by the end of the decade.