European Coalition Plans 'Chips Act 2.0' to Boost Semiconductor Sector

A coalition of nine European countries, including France and Germany, is advocating for a new Chips Act to enhance Europe's semiconductor independence, as the original 2023 act has failed to meet key objectives. Dutch Economy Minister Dirk Beljaarts emphasized the need to invest in chip packaging and production, areas where Europe currently lags. Concurrently, members of the European Parliament have called on the European Commission to initiate a new support program for the semiconductor industry, particularly focusing on AI chips, citing concerns over slow progress under the initial Chips Act. A letter signed by 54 lawmakers criticized the lack of attention to semiconductors in upcoming investment packages aimed at boosting R&D and production capabilities. Industry leaders, including the European Semiconductor Industry Association, have echoed these calls for urgent action, highlighting the need to protect European interests amid increasing global competition. The urgency for these initiatives has been amplified by recent geopolitical developments affecting technology access in Europe.