Chips Act to protect EU against semiconductor shortages

The proposed EU Chips Act is expected to mobilise over €43bn of public and private investments and set measures to prevent, prepare, anticipate and respond quickly to any future supply chain disruptions.

Recent global semiconductors shortages have shown how the global semiconductor value chain depends on a limited number of suppliers, some of whom operate in a complex geopolitical context.

Margrethe Vestager, executive vice-president for a Europe Fit for the Digital Age, said: “We should not rely on one country or one company to ensure safety of supply. We must do more together - in research, innovation, design, production facilities - to ensure that Europe will be stronger as a key actor in the global value chain. It will also benefit our international partners. We will work with them to avoid future supply issues.”

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The European Chips Act aims to ensure that the EU has the necessary components to become a semiconductor leader beyond research and technology in design - plus the manufacturing and packaging of advanced chips - to secure its semiconductor supply and to reduce its dependencies.