After the USA, the European Union is also working on its own chip law.

Like the US, Europe may soon have its own “Chip Act” program. The European Council, one of the EU’s two legislative bodies, has adopted a joint position with the European Parliament to propose the new regulation. Objective: to strengthen the EU’s competitiveness in semiconductor technologies.

While the United States passed the CHIPS Act to boost local research and production of semiconductors, the EU’s Chips Act or direct-to-Chip Act appears to be a form of financial support to build new industry talent in the most important tech business in existence today.

In its official press release, the European Council states that the chips are “essential for a wide range of technological and digital products, such as cars, household appliances and electronic devices”. On the other hand, it is stated that Europe has difficulties in securing semiconductor supply.

EU to spend 43 billion Euros on semiconductor industry

The proposed Chip Law aims to reduce the EU’s weak points, geostrategic problems and dependence on foreign institutions, organizations or companies that affect the domestic market with supply chain disruptions. Europe’s Law on the Chip will provide public and private sector investors with a total of 43 billion euros in support, and three different pillars will be offered to spend all the money. The first of these is to develop technological capacity and support R&D activities. Second, to ensure supply security and sustainability by attracting future investments. Finally, to closely monitor the semiconductor supply chain and ensure coordination in crisis situations.

3.3 billion euros from the budget set by the Chip Law will go to finance the Chips for Europe Initiative. The European Council also proposes the creation of a new regulator along with the Chip Law. The European Chips Infrastructure Consortium (ECIC) or European Chip Infrastructure Consortium to be established will have the legal personality to implement the relevant semiconductor investments and tasks.

According to the European Council’s projections, the global semiconductor industry will be worth around $1 trillion by 2030. Smartphones and PCs, servers and data centers, automotive, consumer electronics, and more are integral parts of this industry. The EU currently has a 10% market share in the global semiconductor industry, and with this law, the EU plans to double its share by 2030.