On July 25, the European Council (EC) approved the Chips Act which aims to create the conditions for the development of a European industrial base in the field of semiconductors, attract investment, promote research and innovation, and prepare Europe for any future chip supply crisis.
The programme should mobilise EUR43 billion in public and private investment (EUR3.3 billion from the European Union budget), with the objective of doubling the EU’s global market share in semiconductors, from 10% now to at least 20% by 2030.
The Chips Act is Europe’s reaction to its perceived overdependence on foreign-produced chips which became apparent during the chips shortage that was precipitated by the COVID-19 pandemic. The Chips Act is aimed at mitigating this by improving the EU’s semiconductors supply security and establishing a production base.
After being signed by the President of the European Parliament and the President of the Council, the regulation will be published in the Official Journal of the EU and will enter into force on the third day following its publication.
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