The European Chips Act, adopted by the European Commission, seeks to strengthen the semiconductor ecosystem. It will reinforce the semiconductor ecosystem in the EU, ensure the resilience of supply chains and reduce external dependencies by attracting investments and supporting the establishment of large-scale production capacities. It is a key step for the EU’s technological sovereignty.

It will do so by focusing on 5 strategic objectives:

1. strengthening research and technological leadership;
2. building and reinforcing Europe’s capacity to innovate in the design, manufacturing and packaging of advanced chips;
3. putting in place an adequate framework to increase production by 2030;
4. addressing the skills shortage and attracting new talent;
5. developing an in-depth understanding of global semiconductor supply chains.

The European Chips Act has 3 main components:

1. a Chips for Europe Initiative to support large-scale technological capacity building and innovation in cutting-edge chips;
2. a new framework to attract large-scale investments in production capacities and ensure the security of supply;
3. a coordination mechanism between the Member States and the Commission to monitor market developments and anticipate crises.

The Chips for Europe Initiative will reinforce semiconductor technologies and innovation capabilities, ensuring EU leadership in this field in the mid to long term.