Proposal for a Regulation establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act)

Author (Corporate)
Series Details COM (2022) 46
Publication Date 08/02/2022
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Legislative initiative tabled by the European Commission on 8 February 2022, setting out measures aimed at increasing the resilience of the European Union's semiconductor ecosystem and increasing its global market share. This is a text with EEA relevance.

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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 State of the European Union (SOTEU) address. This draft law was published on 8 February 2022 alongside a Communication providing the reasoning behind the need to strengthen the EU's semiconductor system. The proposed measures include the establishment of a Chips for Europe Initiative and the establishment of a framework aimed at ensuring the security of supply. It also includes setting up a coordination mechanism between the European Commission and the Member States for strengthening collaboration, monitoring the supply of semiconductors, estimate demand, anticipate shortages, trigger the activation of a crisis stage and act through a dedicated toolbox of measures.

The Council of the European Union adopted a general approach on 1 December. The plenary of the European Parliament adopted a negotiating position on this proposal on 15 February 2023. An informal agreement between the co-legislators on a compromise text for this file was reached on 18 April.

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Commentary and Analysis
The New Statesman, 15/09/2021: The European Chips Act: why Ursula von der Leyen is embracing silicon nationalism
Bruegel: Opinion, 22/09/2021: Europe doesn’t need a ‘Mega-Fab’
Politico, 21/10/2021: Europe’s microchips plan doesn’t add up
CERRE: Events, 21/10/2021: Chips crunch: an EU “third way” to strategic autonomy in semiconductors?
Deutsche Welle, 26/10/2021: Europe overhauls its semiconductor strategy
ACEA: Message DG, 27/10/2021: Chip shortage: auto industry calls for more EU-made semiconductors
EurActiv, 29/10/2021: Chips geopolitics and EU’s new semiconductors sovereignty agenda
Center for European Policy Analysis, 04/11/2021: Chasing Chips: A Geopolitical Puzzle
Digital Europe: Joint Press Release, 04/11/2021: The EU Chips Act needs to create a competitive microelectronics ecosystem based on market demand
SP Global: Market Intelligence: News, 07/02/2022: EU to unveil plans to boost local chip production
ING Think: Articles, 08/02/2022: EU Chips Act to boost Europe’s technological prowess and strengthen economy
Politico, 08/02/2022: Europe has a chips plan — here are 6 things that could kill it
The Economist, 09/02/2022: In the global chips arms race, Europe makes its move
Pinsent Masons: Out-Law News, 09/02/2022: Chips Act aims to make Europe a semiconductor powerhouse
CEPS: In Brief, 10/02/2022: The European Chips initiative. Industrial policy at its absolute worst
Euronews: Opinion, 11/02/2022: For the EU, microchips and geopolitics are two sides of the same coin
The Economist, 12/02/2022: In the global chips arms race, Europe makes its move
Allen&Overy: Publications, 18/02/2022: The EU Chips Act: strengthening the EU’s technological leadership and confronting semiconductor shortages
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Center for Strategic & International Studies (CSIS): Blog, 07/03/2022: The European Chips Act: A Strategy to Expand Semiconductor Production Resiliency
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Federation of German Industries (BDI): Article, 29/03/2022: Can the European Chips Act deliver on its promises?
Bruegel, 02/06/2022: Is the EU Chips Act the right approach?
French Institute of International Relations (IFRI): Briefings, 08/07/2022: Fishing for Chips: Assessing the EU Chips Act
Brookings Institution: TechStream, 09/08/2022: How Europe aims to achieve strategic autonomy for semiconductors
Association for European NanoElectronics Activities (AENEAS): News & Events, 20/08/2022: Proposed EU Chips Act progresses through legislative process
Centre for European Reform (CER): Insights, 20/10/2022: The EU should abandon chip nationalism
Deloitte: Insights, 03/11/2022: A new dawn for European chips
European Parliamentary Research Service (EPRS): Briefing, 28/11/2022: The EU chips act: Securing Europe's supply of semiconductors
Friedrich Ebert Foundation: IPS Journal, 22/02/2023: A blind spot in the EU’s Chips Act
Institute of Electrical and Electronics Engineers: Spectrum, 08/03/2023: How the EU Chips Act Could Build “Innovation Capacity” in Europe
Politico, 19/04/2023: Europe’s chips strategy staggers past the starting line

EurActiv: Topics: Chips Act
Reuters, 15/09/2021: EU plans 'Chips Act' to promote semiconductor self-sufficiency
Politico, 15/09/2021: EU proposes new law to speed up in global chips race
EurActiv, 15/09/2021: European Commission to launch Chips Act in bid for strategic autonomy
Euronews, 16/09/2021: Von der Leyen pitches European Chips Act in a bid to boost the EU's tech self-reliance
Science Business, 16/09/2021: Chips Act on the way to help EU boost semiconductor R&D and manufacturing
Politico, 29/09/2021: France eyes control over chip agenda in EU-US tech alliance
Bloomberg, 30/09/2021: EU, U.S. Seek to Avert Chip-Subsidy Race, Float Supply Links
Reuters, 13/10/2021: Dutch warn against global decoupling in European Chips Act
Reuters, 14/10/2021: EU appeals to shared values to tempt Taiwan's chip firms
EurActiv: Opinion, 10/11/2021: Europe faces surge in demand for leading-edge chips
Bloomberg, 12/11/2021: Chip Shortage Spark War of Words Between Top EU Officials
Reuters, 18/11/2021: EU looking to relax rules to allow funding of cutting edge chip plants
Euronews, 18/11/2021: As tech race heats up, Brussels hints at competition law exception to boost EU-made microchips
EUObserver, 19/11/2021: EU mulls relaxing state-aid rules to help chip production
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Science Business, 18/01/2022: When the chips are down: France sets out to win semiconductors ‘battle’ for Europe
Bloomberg, 04/02/2022: EU Faces Funding, State Aid Hurdles With $48 Billion Chips Act
Politico, 08/02/2022: EU launches Chips Act industrial plan
Deutsche Welle, 08/02/2022: EU unveils multibillion-euro chip production plan
Reuters, 08/02/2022: EU eases state aid rules in multi-billion euro boost for chip sector
Euronews, 08/02/2022: Semiconductors: Brussels wants to plough billions into making more microchips in the EU
Associated Press, 08/02/2022: EU’s chip production plan aims to ease dependency on Asia
RFI News, 08/02/2022: EU joins chips race with a €42 billion bid to end its dependence on Asia
CityAM, 08/02/2022: EU eases state aid rules in multi-billion euro chip boost as UK risks falling behind
The Verge, 09/02/2022: EU outlines €43 billion plan to fix Europe’s chip shortage
Reuters, 09/02/2022: Taiwan sees 'enormous' room for chip cooperation with EU
Emerging Europe, 09/02/2022: The EU is pinning its tech hopes on a 43 billion euros ‘Chips Act’
The Guardian, 10/02/2022: ‘Just-in-time to just-in-case’: EU’s $49bn chip plan shows tectonic shift in global economy
BBC News, 01/04/2022: Chip shortage: Has Europe's plan arrived too late?
Politico, 30/09/2022: NXP warns EU microchips funding falls far behind 2030 targets
Reuters, 14/10/2022: Some EU countries want billion-euro chip plan to also fund current chips
Politico, 15/11/2022: In the global chips race, EU’s cash engine sputters
Science Business, 01/12/2022: EU ministers stop €400M of decommitted Horizon Europe money being diverted to the Chips Act
The Brussels Times, 12/12/2022: EU gets serious on microchip production amid fears of subsidy race
EurActiv, 18/01/2023: EU Parliament’s leading committee readies final position on Chips Act
Science Business, 21/02/2023: Act three: Chips Act heads into negotiation phase
Reuters, 18/04/2023: EU takes on United States, Asia with chip subsidy plan
Associated Press (AP News), 18/04/2023: EU nears deal on $47B law to boost computer chip production
Politico, 18/04/2023: EU legislators strike deal on €43B chips plan
Bloomberg, 18/04/2023: EU Advances €43 Billion Plan to Make More Semiconductors
Euronews, 19/04/2023: EU Chips Act: Leaders strike €43 billion deal to boost semiconductor production in Europe
EurActiv, 19/04/2023: EU institutions reach agreement on European Chips Act

European Parliament: Legislative Observatory: Procedure File for Proposal on Chips Act (2022/0032(COD))
European Parliament: Legislative Train Schedule: European Chips Act (semi-conductors)
European Commission: 2019-2024 Priorities: European Chips Act
European Commission: Blog by Commissioner Thierry Breton, 15/09/2021: How a European Chips Act will put Europe back in the tech race
European Commission: Press Release, 08/02/2022: Digital sovereignty: Commission proposes Chips Act to confront semiconductor shortages and strengthen Europe's technological leadership
European Commission: European Chips Act - Questions and Answers (8 February 2022)
European Commission: Speech by Executive Vice-President Vestager on the European Chips Act (8 February 2022)
European Commission: Statement by President von der Leyen on the European Chips Act (8 February 2022)
S&D EP Group: Newsroom, 08/02/2022: European Chip Act is a bold step towards European technological autonomy that should benefit small and medium enterprises, say S&Ds
EPP EP Group: Newsroom, 08/02/2022: Make Europe the Chips global capital
Renew Europe EP Group: Newsroom, 08/02/2022: For our future economy, we need to ensure leadership, resilience and autonomy
European Parliament: ITRE Committee Hearings, 14/07/2022: How a European Chips Act will put Europe back in the tech race
Council of the European Union: Press Release, 01/12/2022: Chips Act: Council adopts position
Renew Europe Group: Newsroom, 24/01/2023: European Chips Act: Renew Europe slashes red tape and prioritises faster permitting
EPP EP Group: Newsroom, 24/01/2023: EPP Group improves EU Chips Act
S&D EP Group: Newsroom, 24/01/2023: S&Ds: The world industry needs chips and we want them “Made in the EU”
European Parliament: Headlines, 15/02/2023: Chips Act – the EU’s plan to overcome semiconductor shortage
European Parliament: Press Release, 15/02/2023: Semiconductors: MEPs ready to start talks on new law to boost EU chips industry
Council of the European Union: Press Release, 18/04/2023: Chips Act: Council and European Parliament strike provisional deal
European Commission: Press Release, 18/04/2023: Commission welcomes political agreement on the European Chips Act

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