The EU will push procurement of homegrown startup chips to reduce reliance on U.S. and Asian semiconductors

The European Commission plans to enhance the "Chips Act" by encouraging member states to procure chips designed and manufactured by European startups, aiming to reduce Europe's dependence on semiconductor products from the United States and East Asia.

According to a document seen by Reuters, this proposal—dubbed "Chips Act 2.0"—is a supplement to the EU Chips Act implemented three years ago. The original act aimed to attract investment in advanced semiconductor manufacturing and hoped to increase the EU’s share of the global chip market to 20% by 2030, but so far its impact has been limited.

Henna Virkkunen, the EU Commissioner for Digital and Technology Affairs, is expected to unveil details of the new plan on June 3. In recent years, the EU has continuously promoted autonomy in key technologies and core services, driven primarily by escalating U.S.-China technological competition and the dominant positions held by both countries in relevant sectors.

Currently, Europe accounts for about 10% of global semiconductor production.

The document notes that unlike the previous version of the Chips Act, which focused on supply-side support, "Chips Act 2.0" will shift emphasis toward demand-side policies. It states: "Through the 'demand acceleration mechanism,' Chips Act 2.0 will also connect suppliers with users via procurement agreements and demand platforms, thereby promoting the adoption of chips designed and manufactured within the EU."

The European Commission also plans to use "public innovation procurement" as a strategic tool to stimulate market demand and support homegrown startups and growth-stage tech companies across the EU.

According to estimates in the document, the EU's semiconductor industry ecosystem will require approximately €120 billion (about $13.98 billion) in public and private investment by 2035, with around €30 billion dedicated to building advanced semiconductor wafer fabrication plants.

In addition, the European Commission has proposed accelerating environmental approval processes for chip factories to shorten project implementation timelines.

Source: rfi

Original: toutiao.com/article/1866511326309572/

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