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Euro semi firms push for 'Chips Act 2.0' to expand beyond manufacturing

Mar 20, 2025 - theregister.com
European chipmakers are urging local politicians to expand support beyond the €43 billion European Chips Act, focusing on research, development, materials, and design, not just manufacturing. At a roundtable event in the European Parliament, industry bodies SEMI Europe and the European Semiconductor Industry Association (ESIA) discussed a broader strategy, dubbed "Chips Act 2.0," to enhance the entire semiconductor supply chain. They sent a declaration to the European Commission, advocating for additional R&D funds and measures to boost investment and competitiveness. The call for a holistic approach comes amid global market uncertainties and the formation of the Semiconductor Coalition by nine EU Member States to strengthen Europe's strategic autonomy in the sector.

The European Chips Act has spurred manufacturing investment but neglected other supply chain areas, with projects delayed by central EC approval requirements. Industry leaders, including Infineon, Bosch, and ASML, participated in the discussions, highlighting the need for a revised strategy with faster administrative processes, resilient trade policies, and a focus on innovation. Meanwhile, the UK has shifted its semiconductor strategy towards design and R&D, drawing mixed reactions. Britain's Technology Secretary, Peter Kyle, is advocating for closer UK-US tech partnerships, despite EU efforts to reduce reliance on foreign digital services.

Key takeaways:

  • European chipmakers are urging politicians to expand support beyond the Chips Act to include research, development, materials, and design.
  • The European semiconductor industry is calling for a holistic approach to support the entire supply chain, not just manufacturing.
  • There is a push for a revised European Chips Act with faster administrative procedures and a focus on innovation and resilience.
  • The UK's focus on chip design and R&D is seen as a strategic move, but the government faces criticism for slow progress on its semiconductor strategy.
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