EU Chips Act likely to get green light this month
- The proposed legislation aims to double the bloc’s share of global chip output to 20 per cent over the next decade
- EU governments and lawmakers have expanded the scope to cover the whole value chain, including older chips and research and design facilities
The European Union’s 43 billion euro (US$47 billion) plan to boost its semiconductor industry and catch up with the United States and Asia is likely to get the green light from EU countries and lawmakers on April 18, people with direct knowledge of the matter said on Wednesday.
The European Commission announced the Chips Act last year in a bid to cut EU reliance on US and Asian semiconductors following global supply chain problems that hurt European businesses from carmakers to manufacturers.
The proposed legislation, which aims to double the bloc’s share of global chip output to 20 per cent over the next decade, came after the United States announced its Chips for America Act to compete with Chinese technology.
EU countries and lawmakers will meet at the European Parliament’s monthly session in Strasbourg on April 18 to negotiate details of funding for the Act and will likely clinch a deal, the people said.
Discussions have to date focused on a 400 million euro shortfall, but the EU executive has managed to come up with the bulk of the funds, they said.
