THE EUROPEAN CHIPS ACT
The objective of the proposed regulation is to strengthen the European semiconductor ecosystem, increase the security of the EU’s semiconductor supply, and develop new markets for cutting-edge European technologies.
On February 8, 2022, the European Commission published the proposal for the European Chips Act, which aims to ensure that the availability of chips represents 20% of global production by 2023. The European Chips Act will mobilize more than €43 billion in public and private investment.
Strengthening European leadership in research, technology, and development of increasingly micro and high-performance chips
Building and enhancing the innovation, design, production, and packaging capacity for advanced chips
Consolidating skills and knowledge and attracting new talent to form teams of excellence
Implementing an integrated plan to increase production capacity by 20% in the global market by 2030
Developing a deep understanding of global production and distribution networks of semiconductors
SCOPE – The European Chips Act Proposal:
- Investments in state-of-the-art technologies
- Access across Europe to design tools and pilot lines for prototyping, testing, and experimentation
- Certification procedures for secure and energy-efficient chips
- A more favorable framework for investors to establish production facilities in Europe
- Support for innovative start-ups, scale-ups, and SMEs
- Capacity building, talent, and innovation
- Tools to anticipate responses to semiconductor shortages and crises to ensure supply security
- International partnerships
STRUCTURE – The Proposal is Built on Three Governance Pillars
Pillar I – Chips for EU Initiative aims to reinforce the EU’s R&I capacity, promoting the lab-to-fab process and supporting SMEs and start-ups to scale their businesses.
Pillar II – Security of Supply will promote supply security through the creation of a structure that attracts investment and advanced production capacity via first-of-a-kind facilities for integrated production (Integrated Production Facilities – IPF) and open foundries (Open EU Foundry – OEF).
Pillar III – Preparedness & Monitoring represents the coordination mechanism between Member States (MS) and the European Commission to enhance collaboration, monitor supply, estimate demand, and anticipate and respond to crisis situations.
BUDGET & INSTRUMENTS
The European Commission proposes funding as follows:
- The future European Chips Joint Undertaking (an evolution of the current Key Digital Technologies – KDT – Joint Undertaking), with €4.175 billion.
- €300 million from the European Innovation Council.
- €250 million from InvestEU.
- €1.125 billion from the Multiannual Financial Framework.
The EU budget will be complemented by €5.3 billion from Member States (MS) and €4.65 billion from the private sector.
One of the most ambitious initiatives supporting the entire European Chips Act will be the Important Projects of Common European Interest (IPCEI), which are large-scale projects involving more than one Member State and representing a significant benefit for achieving one or more of the EU’s industrial policy objectives. The European Commission anticipates that Member States will invest around €30 billion in IPCEIs in this area. In 2018, the first IPCEI in microelectronics (with 5 MS) was approved. In the second half of 2020, preparatory work began for the notification to the European Commission of a second IPCEI (with 20 MS) to support the microelectronics and communication technologies sector.
CALENDAR
At the national level, ANI and FCT, in close coordination with the Directorate-General for Economic Activities of the Ministry of Economy and the Sea (DGAE/MEM), monitor and support the discussions on the European Chips Act regulation.
Since the launch of the Chips Act proposal, discussions at the European Union Council level and the regulatory proposal have undergone various changes proposed by Member States.
At the COMPET Council meeting on the Internal Market and Industry, held on December 1, 2022, the Ministers responsible for Industry from the different Member States were invited to support the Global Approach to the Commission’s proposal [PDF], based on the compromise text found in the Annex and available HERE, and to approve the statement in the Addendum [PDF], which will be annexed to the minutes of the meeting.
In early 2023, Trilogues between the Commission, the Council, and the European Parliament began to reach the final version of the European Chips Act regulation proposal.