EU adopts legislation to secure chip supply

The law’s intent is to strengthen Europe’s strategic autonomy and security.

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The European Parliament has adopted legislation to secure the EU’s chip supply by boosting production, innovation, and implementing emergency measures against shortages. The law aims to create a favourable environment for chip investments, support small and medium-sized businesses, and attract research and design talent. It includes a crisis response mechanism, funding for chip-related research, and measures to strengthen international cooperation.

It was also agreed upon to allocate €3.3 billion in funding for chip research and innovation, while simultaneously establishing competence centers with the objective of addressing skills shortages and attracting skilled individuals in the fields of research, design, and production.

The legislation received strong support in Parliament and awaits endorsement by the Council to become law. Its goal is to address the EU’s low share of global semiconductor production capacity, mitigate supply chain vulnerabilities, and alleviate the impact of semiconductor shortages on industries and consumers.