All the member nations of the EU have signed on to a Dutch-led coalition that wants to encourage additional investment in semiconductor manufacturing in the EU. This revision of the 2022 European Chips Act would see the EU pivot its plan to take over global production and instead target specific weaknesses in the EU's semiconductor strategies, as per Reuters.
The EU's Chips Act budgeted 43 billion euros ($50.4 billion) in semiconductor manufacturing, chip design, and better supply chain monitoring that could allow state intervention in key areas. The idea was to counterbalance the USA's investment in encouraging chip manufacturing in the United States with the Chips Act and Inflation Reduction Act efforts, investing tens of billions in American semiconductor manufacturing. The EU Chips Act hoped to regain some market share from Taiwanese TSMC, too, targeting control of some 20% of the supply chain by 2030.
