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EU Chips Act: Europe's plan to regain global leadership in semiconductors (08 February 2022).

Europe cannot miss out in the technological race for the semiconductors of the future.

All our major international partners are investing heavily in this sector, which is essential for our industries, our economies and our societies.

Europe cannot stand still and watch these opportunities pass by. It's time we join the race.

And that we do so without accepting any geographical segmentation that would confine us to ageing technologies, making us dependent on the technologies of the future.

It was therefore important to open up very clear opportunities, both for technological excellence — semiconductors of less than 2 nanometers — and for more energy-efficient technologies (FDSOI). This is what we have done with the Chips Act.

Europe holds very good cards as it has an excellent research base.

For example, I was at the IMEC Research Institute in Leuven yesterday, where researchers are already engraving 1.4 nanometer silicon wafers. We must consolidate this excellence in research.

However, we need to help this innovation reach industrialization – from the lab to the fab. The “Chips for Europe” initiative will finance strategic infrastructure — pilot lines and a design platform — to test and industrialise processes. And create new applications for connected cars, health sector, telecommunication, defense and security.

These unique infrastructures will be open to all players, of large or small scale, European or international.

To this end, we will invest EUR 11 billion until 2030 by pooling EU and Member State budgets.

The vaccine crisis has shown us that being excellent in research is not enough to cover our needs.

We need to be able to dispose of proper production facilities.

It is not about being self-sufficient, but about equipping Europe to become a factory, capable of gaining an increasing share of the growing global market and exporting our semiconductors to the world.

It is therefore imperative to invest in our production capacities, both in the very large factories (called “Mega FABS”) but also in the whole value chain.

This means mobilising public and private investment, but under our own conditions: ensuring Europe's security of supply.

To be attractive, we adapt through the Chips Act the state aid rules to the particular case of semiconductors and their industrial, economic and strategic challenges. By 2030, Member States could invest EUR 30 billion in a new important project of common European interest (IPCEI) and Mega FABS.  

Finally, we propose to be more responsive through a better monitoring of the markets.

We need to better anticipate future crises and be able to draw on a range of response tools such as export authorisation mechanisms or priority orders.

We have learned from the vaccine crisis. We are therefore completing our legislative arsenal.

We are adapting our internal market to the realities of the new geopolitics of value chains. We equip Europe with the leverage needed to keep global chains open even in times of crisis. This will complement the rebalanced international partnerships that we will build with all our partners.

In conclusion, by investing in the markets of the future and rebalancing global supply chains, we empower European industry to remain competitive, create quality jobs and respond to the growing global demand.

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