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Semiconductor Industry Calls for ‘Chips Act 2.0’ in Europe
Industry Push for Expanded Support Program
On March 19, 2025, leading semiconductor manufacturers and supply chain firms urged the European Commission to launch a new support program, referred to as ‘Chips Act 2.0.’ This initiative seeks to go beyond manufacturing and include chip design, materials, and equipment.
The call for action followed a meeting in Brussels between top industry firms and European lawmakers. Industry groups such as the European Semiconductor Industry Association (ESIA) and SEMI Europe are preparing to present their proposal to the Commission’s digital chief, Henna Virkkunen.
Background: The Original Chips Act
The original European Chips Act, introduced in April 2023, allocated €43 billion in subsidies to boost Europe’s semiconductor sector. The goal was to double the region’s share of the global chip market to 20% by 2030.
However, industry leaders now argue that additional measures are needed to secure Europe’s long-term competitiveness, particularly against the U.S. and China.
Key Proposals for ‘Chips Act 2.0’
- Comprehensive Industry Support: The initiative would expand financial aid beyond manufacturing to include chip design, materials, and advanced equipment.
- Enhanced Global Competitiveness: Industry groups stress the need to support both cutting-edge and foundational semiconductor technologies.
- Strategic Coordination: There is a proposal to appoint a “Chips Envoy” to oversee semiconductor policy and ensure coherence across EU member states.
Addressing Global Challenges
Industry leaders highlight the need for stronger coordination to build a resilient semiconductor supply chain. They also emphasize the importance of countering competition from state-subsidized rivals, particularly from China.
The push for ‘Chips Act 2.0’ reflects a strategic effort to enhance Europe’s position in the global semiconductor market, ensuring the industry remains competitive and sustainable.
“Semiconductor Industry Calls for ‘Chips Act 2.0’ in Europe” “Semiconductor Industry Calls for ‘Chips Act 2.0’ in Europe”