The European Council approves Chips Act

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.

Building of the Council of Europe in Strasbourg

The European Council has given its approval to the ‘Chips Act,’ a measure aimed at strengthening the semiconductor industry in Europe. The act seeks to attract €43 billion in investment to double the EU’s global market share in semiconductors by 2030 and reduce reliance on foreign chip suppliers. By enhancing competitiveness, generating job opportunities, and ensuring a secure supply in critical sectors, the act is expected to have significant positive impacts. Moreover, It was also agreed upon to allocate €3.3 billion in funding for chip research and innovation while simultaneously establishing competence centres with the objective of addressing skills shortages and attracting skilled individuals in the fields of research, design, and production. The Council also approved an amendment to the regulation under Horizon Europe, allowing the establishment of the chips joint undertaking, building on and renaming the existing key digital technologies joint undertaking.

The Chips Act has three main pillars:

  • Building large-scale capacity and innovation;
  • Making sure the EU is self-sufficient;
  • And preparing the EU for potential future supply crises.

After receiving approval from the European Parliament in July and now gaining approval from the Council, the regulation has completed its decision-making process. Once signed by the President of the European Parliament and the President of the Council, it will be published in the Official Journal of the European Union.

What are the goals of Chips Act?

To achieve technological sovereigntyTo enhance economic competitiveness
To diversify semiconductor manufacturingTo compete with foreign competitors
To increase resilienceTo contribute to the digital and green transitions