Member States request revision of European Chips Act

The so-called ‘Semicon Coalition’ of nine countries, including the Netherlands and Belgium, was formed in March. A statement from the nine member states was signed this week on the sidelines of a meeting of the European ministers for Competitiveness by all member states and submitted to the Commission.

The European Chips Act came in the wake of the COVID-19 pandemic and the disruption of international supply chains, which raised awareness that the EU is too dependent on other parts of the world. With estimated investments of up to 86 billion euros, the European Commission hoped to double the European share in the production of advanced chips to 20 percent by the end of the decade.

That target now appears to be unattainable – the Commission itself estimates a share of 11.7 percent – and according to the member states, much value creation is still happening outside the EU while other world powers have significantly increased their public investments. They describe the 20 percent target as “unrealistic and too broad,” and they argue that there is a lack of a clear strategy regarding Europe’s leading role in the semiconductor value chain.

In addition to setting new targets, the member states are also calling for the semiconductor sector to be treated as a strategic industry and for collective investment in research and development, innovation, and protection. There should also be a broader talent pool and better collaboration among the various players.

The European Commission has meanwhile initiated a review procedure of the legislation, to which the member states can also contribute.