Supply chains to become more resilient, while EU share of chip production to rise significantly.
The European Commission on Tuesday proposed a whole package of measures to strengthen the semiconductor industry in Europe. The shortage of the components that now control countless functions in electrical devices and vehicles has left many industries facing supply bottlenecks in recent years, some of which continue to this day.
With the European Chips Act, the Commission aims to create “a thriving semiconductor ecosystem from research to production” and make supply chains more resilient, according to a press release. To that end, 43 billion euros in public and private investment has been earmarked, it said. As a result, the current market share of chip production is expected to double to 20% by 2030.
“Securing the supply of the most advanced chips has become an economic and geopolitical priority,” commented Internal Market Commissioner Thierry Breton.
The European Parliament and Member States still need to approve the Commission’s proposal before it can enter into force.