EU passes 43 billion euro chip bill

On July 25th, the European Council made a significant announcement, granting its approval to the "Strengthening the European Semiconductor Ecosystem" regulation, more commonly known as the "EU Chip Act." This momentous decision follows the earlier approval from the European Parliament, marking the final stage of the decision-making process.

The primary objective of the EU Chip Act is to foster a conducive environment for the growth and advancement of the industrial base within the European semiconductor sector. By attracting investments and promoting cutting-edge research and innovation, Europe aims to be well-prepared to tackle potential chip supply challenges in the future. The ambitious plan is set to mobilize a staggering €43 billion in combined public and private investments, with a significant contribution of €3.3 billion from the EU budget. The ultimate vision is to propel the EU's share in the global semiconductor market to a minimum of 20% by 2030, effectively doubling the current market presence of 10%.

Prominent technology giants, such as Intel and STMicroelectronics, have already expressed their commitment to establishing new state-of-the-art manufacturing facilities in Europe.

The EU Chip Act represents a decisive step towards injecting billions of euros into cutting-edge chip research and development initiatives across the region. Significantly, the legislation empowers member states to extend subsidies specifically targeted at encouraging pioneering innovations in chip production.

Having received the European Council's approval, the legislative act is now officially adopted, pending signature by both the President of the European Parliament and the President of the European Council. Upon publication in the esteemed Official Journal of the European Union, the regulation will come into full effect three days thereafter. This momentous milestone is expected to herald a new era of transformative growth and competitiveness in Europe's semiconductor landscape.