A Chips Act for Europe

Summary:

Communication published by the European Commission on 8 February 2022, providing the context for the importance on strengthening the semiconductor ecosystem in the European Union (EU).

Further information:

Semiconductor chips are the essential building blocks of digital and digitised products. Due to the COVID-19 (coronavirus) pandemic, Europe and other regions of the world have experienced significant supply challenges, and shortages of chips. Despite certain strengths, Europe has an overall global semiconductors market share of only 10% and largely relies on third-country suppliers. Faced with growing geopolitical tensions, fast growth in demand, and the possibility of further disruptions in the supply chain, it has been deemed necessary that Europe uses its strengths and puts in place effective mechanisms to establish greater leadership positions and ensure security of supply within the global industrial chain.

In September 2021, an EU Chips Act was announced during the annual SOTEU address. This Communication therefore provides the context and proposes a set of measures for strengthening Europe’s semiconductor ecosystem for the Digital Decade. To this end, it is accompanied by:

• Proposal for a Regulation establishing a framework of measures for strengthening Europe's semiconductor ecosystem (Chips Act);
• Proposal for a Council Regulation amending Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe, as regards the Chips Joint Undertaking;
• Commission Recommendation on a common Union toolbox to address semiconductor shortages and an EU mechanism for monitoring the semiconductor ecosystem.

• Primary Source

Official

European Commission: Press Release, 08/02/2022: Digital sovereignty: Commission proposes Chips Act to confront semiconductor shortages and strengthen Europe's technological leadership https://ec.europa.eu/commission/presscorner/detail/en/ip_22_729

European Commission: European Chips Act - Questions and Answers (8 February 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_730

European Commission: Speech by Executive Vice-President Vestager on the European Chips Act (8 February 2022) https://ec.europa.eu/commission/presscorner/detail/en/speech_22_888

European Commission: Statement by President von der Leyen on the European Chips Act (8 February 2022) https://ec.europa.eu/commission/presscorner/detail/en/statement_22_866

---