EU Parliament approves billions in funding for domestic microchip production
43 billion euros to promote domestic microchip production: Europe wants to become independent

The EU Parliament has approved the so-called Chips Act, which aims to promote domestic microchip production. With a mobilization of 43 billion euros, the EU aims to become more independent from other markets and regain lost ground in semiconductor manufacturing. Parliament's approval was welcomed by Industry Commissioner Thierry Breton, who stressed that Europe wants to be a leader in semiconductors.
The Chips Act has two main goals: to increase the EU's global market share from the current nine percent to 20 percent and to enable Europe to manufacture the most advanced semiconductors. Breton explained that the Act is already having a positive impact. Since its introduction, more than 100 billion euros in public and private investments have already been announced in this area.
The law is designed to simplify approval procedures for building chip factories and facilitate state aid to attract more manufacturers to Europe. It also affects foreign companies that want to produce in Germany, such as Intel, Wolfspeed, Infineon and TSMC. In addition, the Chips Act provides for an emergency mechanism that kicks in when certain semiconductors are in short supply, empowering the Commission to take action to ensure supply.
The EU plans to mobilize a total of 43 billion euros in public and private investment, with the majority coming from member states. It also plans to support small and medium-sized enterprises and startups, not just megaprojects. Member state approval is required for the Chips Act to go into effect.
Social Democrat Tiemo Wölken emphasizes the importance of developing products in the field of semiconductor manufacturing. He is pleased that the Act also enables the design of future chips in Europe and promotes a more independent supply chain position and technology leadership. Wölken sees the Chips Act as a promising start for Europe's much-needed catch-up in the semiconductor industry. As soon as the member states give the green light, the Act can come into force.
