Europe’s main semiconductor industry body, the European Semiconductor Industry Association (ESIA), has urged the European Union to enhance support for the chip sector. This includes accelerating aid disbursement, developing a revised “Chips Act 2.0,” and appointing a dedicated “Chips Envoy” to advocate for the industry’s interests. The ESIA’s statement emphasizes the need for fewer export restrictions and faster allocation of financial aid, focusing on areas where European companies already have an edge.
The ESIA, representing major chipmakers like Infineon, STMicroelectronics, NXP, leading equipment manufacturer ASML, and research organizations such as imec, Fraunhofer, and CEA-Leti, called for immediate action on a new version of the Chips Act. The initial EU Chips Act, introduced in April 2023, aimed to provide €43 billion in subsidies to increase Europe’s share of the global semiconductor market to 20% by 2030. Despite these efforts, a recent review by the German think tank Interface noted that Europe has struggled to achieve this goal and has maintained less than 15% of the global market for the past four decades. However, the first Chips Act successfully focused policymakers’ attention on the semiconductor sector.
Key initiatives under the first Chips Act included a €10 billion chip manufacturing facility by Taiwan’s TSMC in Dresden and a €30 billion project by Intel in Magdeburg, Germany. Despite these ambitious plans, the Intel project has faced delays, with uncertainties surrounding EU approval for aid amid Intel’s current business challenges, raising concerns about the project’s future.
Regarding export policies, the ESIA acknowledged the importance of safeguarding technology and security. However, it advocated for a more supportive economic security approach centered on incentives rather than restrictive measures. The EU’s alignment with U.S.-led efforts to limit Chinese technological and military advancements has affected companies like ASML, which is restricted from shipping certain high-end products to China. Dutch Prime Minister Dick Schoof indicated that the Netherlands would consider ASML’s economic interests while tightening export rules to China further.
Featured Image courtesy of SAMCO Technologies
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