The European Semiconductor Industry Association (ESIA) has released a new policy document aiming to enhance the EU Chips Act. Nearly a year and a half after the original £36.2 billion ($47.7 billion) Chips Act was authorized, the industry is advocating for a support package known as Chips Act 2.0. A key request in the document is for increased state aid for the semiconductor sector from 2024 to 2029. Additionally, ESIA proposes the creation of a ‘chips envoy’ to guide policy decisions within the EU.
The original Chips Act aimed to boost the EU's semiconductor market share from 10% to 20% by 2030, initially focusing on high-end chips but now including research, design facilities, and older chips. Without greater attention from policymakers, ESIA warns that achieving this target will be challenging. The report calls for a comprehensive policy strategy that prioritizes competitiveness to foster growth and investment in Europe’s semiconductor industry. It stresses the need for a future-proof state aid regime to help European companies compete against firms from other regions.
Significant projects have already emerged from the Chips Act, including a £8.4 billion ($11 billion) plan by TSMC in Dresden and a £25.2 billion ($33.2 billion) Intel-backed project in Magdeburg, Germany. The ESIA’s recommendations emphasize the urgency of adapting policy to support the semiconductor sector effectively.
