Europe’s Semiconductor Industry Demands Improved Chips Act

The European Semiconductor Industry Association (ESIA) has called for an immediate update to the EU’s Chips Act, which was implemented in September 2023. The association comprises major chipmakers such as NXP and Infineon, as well as research organizations including imec and Fraunhofer.

Challenges Faced by the Chip Industry

The current Chips Act aims to mobilize investments to help the bloc produce more semiconductors. However, the association has acknowledged the need for changes to the act. One of the challenges faced by the industry is the need for fast-tracking state aid schemes, which is crucial for attracting major international companies and increasing domestic chip factories.

Actionable Steps

To address these challenges, the ESIA has proposed several actionable steps:

<li/fast-tracking state aid schemes for major international companies, <li/supporting open trade with a more positive approach to economic security, <li/implementing continuous competitiveness checks, and <li/adopting a coordinated, "holistic" industrial strategy that involves industry players.

Driving the Semiconductor Industry Forward

To ensure the success of the Chips Act, the ESIA emphasizes the need for a dedicated ‘Chips Envoy’ responsible for overseeing the overall industrial policy approach to semiconductors. This will facilitate collaboration between the industry players and the European Commission. By supporting these changes, the EU can maintain momentum in the global race for technological leadership and promote a more competitive semiconductor industry.

My Thoughts

Europe’s Semiconductor Sector Demands Improved Chips Act

The European Semiconductor Industry Association (ESIA) has called for an immediate ‘Chips Act 2.0’ to maintain the EU’s momentum in the global technological leadership race. As a representation of the association that consists of major chipmakers such as NXP and Infineon, research organizations including imec and Fraunhofer, it is clear that urgent action is necessary.

Key Areas of Improvement

1. Fast-tracking state aid schemes
2. Support of open trade
3. Continuous competitiveness checks
4. A coordinated ‘holistic’ industrial policy approach

The current EU Chips Act has laid the groundwork for significant growth in the semiconductor sector. However, if the EU wants to maintain its competitive edge, it must expedite the implementation of the Chips Act, prioritize open trade, and strengthen the ties between industry players. This way, it can build upon the existing momentum and create a thriving environment for semiconductor innovation.

It is crucial for the EU to seize this opportunity and show the world that it is capable of catapulting itself to the forefront of the global semiconductor sector.