- The EU is investing $3.6 billion of its funds to support the act
- The EU has set up a semiconductor alert system to report semiconductor supply chain disruptions
The European Union (EU) Chips Act has come into force to enhance its semiconductor market and achieve the target to double its global market share to 20% in 2030.
The act has three core objectives, the first one is a Chips for Europe Initiative. This is a program which aims to bridge the gap between research and innovation by promoting advanced semiconductor technologies by European businesses.
The second objective is efforts to attract, which attract new investments by promoting European investment, expediting permits for innovative facilities and establishing more centres of excellence.
The EU’s executive branch has enabled the bloc to monitor the supply of semiconductors, estimate demand, anticipate shortages, and, if necessary, trigger the activation of a crisis intervention. A semiconductor alert system was set recently to allow stakeholders to report semiconductor supply chain disruptions.
With an agenda to attract $43.7 billion from private investment, the EU is investing $3.6 billion of its funds to support the act.
“With the entry into force today of the European Chips Act, Europe takes a decisive step forward in determining its own destiny. Investment is already happening, coupled with considerable public funding and a robust regulatory framework,” said Thierry Breton, commissioner for Internal Market.
“We are becoming an industrial powerhouse in the future markets — capable of supplying ourselves and the world with both mature and advanced semiconductors. Semiconductors that are essential building blocks of the technologies that will shape our future, our industry, and our defence base,” he said.
The legislation becomes effective five months following the agreement between the European Council and the European Parliament on the final draft.