SEMI Applauds Provisional Agreement for EU Chips Act

SEMI applauded the provisional agreement reached on April 18, 2023 in the European Chips Act Trilogue Negotiations to invest €43 billion to bolster Europe’s microelectronics industry. The European Parliament, Commission and Council forged the agreement in Strasbourg, France.

In the year since the landmark legislation was drafted, the European Chips Act has become a strategic centerpiece of Europe’s industrial ambition. The legislation aims to facilitate the continent’s digital and green transition by strengthening its semiconductor industry production capacity. A strong supporter of Europe’s economic growth, SEMI Europe expects the EU Chips Act to help Europe increase its global semiconductor manufacturing share to 20% in the next decade.

The legislation includes a crisis response provision through which the European Commission will assess risks to the European Union’s semiconductor supply and publish early warning indicators in member states that might trigger EU-wide chip shortage alerts.

“The European Chips Act is a significant step forward for the semiconductor industry in Europe with robust investments to help strengthen manufacturing and the resiliency of global supply chains,” said Ajit Manocha, SEMI president and CEO. “In addition, the Act will enable cohesive strategies to grow Europe’s talent base and ensure the region remains at the forefront of innovation.”

“Now is the time to invest in the semiconductor sector in Europe,” said Laith Altimime, president of SEMI Europe. “The European Chips Act strengthens the continent’s appeal as a destination for semiconductor industry investment and lays the groundwork for the growth of the entire ecosystem. The act will help create a more favorable environment for chip industry investments in Europe and promises to spark greater innovation.”