The European Commission is advocating for governments across the EU to prioritize the purchase of chips produced by local startups. This initiative is part of a broader strategy to decrease the bloc's dependence on semiconductor manufacturers from the U.S. and East Asia.
The proposal, known as Chips Act 2.0, aims to enhance demand for EU-manufactured chips, building on the original Chips Act introduced three years ago. The initial act fell short of its objectives, which included boosting advanced manufacturing and increasing the EU's global chip market share to 20% by 2030.
Key Objectives of Chips Act 2.0
- Shift focus from supply-side measures to demand-side strategies.
- Facilitate connections between chip manufacturers and potential buyers through agreements and a dedicated forum.
- Utilize public innovation procurement as a strategic tool to stimulate demand for EU-designed and EU-made chips.
Environmental Considerations
In addition to promoting local chip production, the Commission is also looking to expedite environmental approvals for semiconductor manufacturing facilities, which could further support the growth of the industry within Europe.
Conclusion
This initiative reflects the EU's commitment to developing and controlling critical technologies, driven by increasing geopolitical tensions with major players like the U.S. and China. By fostering local chip production, the EU aims to secure its technological independence and bolster its economy.
