To make the European Union more competitive in the global technology race, Brussels is providing money for the chips that power electronic devices as supply chain problems have made them scarce, the European Commission announced in a Tuesday (Feb. 8) press release.
Under the European Chips Act, the government will provide 11 billion euros (about $12.6 billion) for research, design and manufacturing of semiconductors, the release stated. The measure sets a goal of marshalling 43 billion euros (about $49.2 billion) in public and private investment.
The measure was crafted by lawmakers to bolster Europe’s competitiveness and help achieve the digital and green transition, according to the release.
“The EU Chips Act will build on Europe’s strengths — world-leading research and technology organizations and networks as well as host of pioneering equipment manufacturers — and address outstanding weaknesses,” the EC said in the release. “It will bring about a thriving semiconductor sector from research to production and a resilient supply chain.”
The government cash will be made available to strengthen research and innovation, ensure application of the advanced semiconductor tools, train staff and understand the semiconductor ecosystem, the release stated.
“The European Chips Act will be a game changer for the global competitiveness of Europe’s single market,” said Commission President Ursula von der Leyen in the release. “In the short term, it will increase our resilience to future crises by enabling us to anticipate and avoid supply chain disruptions.”
Just last week, von der Leyen said the commission will propose new legislation to deal with microchip shortages in Europe.
Read more: Europe Continues Regulatory Spree With European Chips Act
By the end of the decade, 20% of the world’s microchips production should be in Europe, she said. That’s twice as much as today, in a market that is set to double in the next decade. So, it means quadrupling today’s European production.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More