MEPs adopt legislation to boost EU chips industry

Good news on the European semiconductor front! On Tuesday, January 24th, members of the European Parliament (MEPs) backed plans to secure the European Union supply of chips by boosting production and innovation, as well as setting up emergency measures against shortages. Europe’s share in global semiconductor production capacity is currently below 10%. The EU’s legislative proposal aims to bring it up to 20% by 2030.

The Industry and Energy Committee adopted two draft bills:

  • One on the “Chips Act” aimed at bolstering technological capacity and innovation in the EU’s chips ecosystem
  • One on the Chips Joint Undertaking to increase investments for developing this type of European ecosystem

In their amendments to the Chips Act, MEPs focused more on next-generation semiconductor and quantum chips. A network of competence centers would be created to address the skills shortage and attract new talent on research, design, and production. The legislation would also support projects aiming to boost the EU’s security of supply by attracting investment and building up production capacity.

On the Chips Act, the mandate for negotiations will be announced at the opening of the 13-16 February plenary session in Strasbourg, France. If there is no request to put the decision to enter into negotiations to the plenary vote, Parliament will be able to start talks with the Council. Parliament will hold a vote on the Chips Joint Undertaking proposal during the same session.