EU Chips Act – 43 billion euros for the development of the semiconductor industry in Europe

The European Union, following the example of the United States, will implement a 43 billion euros ($47 billion) financial support plan that will encourage the development of the semiconductor industry in Europe and reduce the dependence of European manufacturers on China and the United States. This is reported by Reuters.

Last year, the European Commission announced the development of the Chips Act, which will reduce the EU’s dependence on American and Asian semiconductors, which became evident after the problems with the global chip supply chain hurt many European businesses, primarily car manufacturers and manufacturers of household appliances.

The proposed law, which aims to double the EU’s share of global chip production to 20% over the next decade, comes after the US announced the adoption of CHIPS law aimed at reducing the dependence of manufacturers of high-tech products on China.

According to Reuters, as early as April 18, 2023, during the monthly session of the European Parliament in Strasbourg, lawmakers plan to discuss the details of financing the Chips Act and are likely to reach an agreement. Now the discussion is focused on the deficit of 400 million euros ($438 million), but it seems that the executive power of the EU has found where to get these funds.

One of the main hubs for the development of the European ecosystem of semiconductor production should be the Belgian Interuniversity Microelectronics Center (IMEC), which unites more than 600 major market players and conducts research in the field of nanoelectronics, artificial intelligence, medical chips, and other related fields.

As for the production base, it is known that Intel chose Germany to build its new mega-complex to produce chips, and the Franco-Italian company STMicroelectronics, together with GlobalFoundries, is building a chip factory worth 6.7 billion euros in France, using funds provided by the country’s government.