Chips Act Secures Final Stage Of Approval From Council

The Council of the European Union presidency has confirmed that the Council has given the final sign-off on the EU's regulatory plans to strengthen the bloc's semiconductor production sector, known as the 'Chips Act'. Press release here.

• The Chips Act, according to the Council, "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 €43 billion in public and private investment (€3.3 billion from the EU budget), with the objective of doubling the EU’s global market share in semiconductors, from 10% now to at least 20% by 2030."
• The initial Chips Act was proposed in Feb 2022, amid a global semiconductor supply crunch in the wake of the COVID-19 pandemic. The deal will allow member states to provide state aid to 'mega fabs' (chip-making factories) if they meet specific criteria, as well as introducing a mechanism intended to alleviate chip supply chain crunches.
• The deal comes as a direct counter to the US CHIPS and Science Act, which provides USD52.7bn for US semiconductor research. While talking up cooperation between the EU and US, the two sides continue to engage in major tit-for-tat economic support programmes for industries deemed strategically important.