ESIA urges EU to fast-track Chips Act 2.0 and appoint ‘Chips Envoy’

Chips Act update: The European Semiconductor Industry Association (ESIA) has called on the European Union to accelerate support for the semiconductor sector by introducing an updated "Chips Act 2.0" and appointing a dedicated 'Chips Envoy'.

In a recent statement, ESIA stressed the need for fewer export restrictions, a focus on European companies' strengths, and expedited aid for the industry under the new EU Commission. The association stressed that having a 'Chips Envoy' to oversee semiconductor policy is crucial.

Call for Chips Act 2.0

ESIA, which includes major chipmakers like Infineon, STMicroelectronics, and NXP, as well as research institutions such as imec, Fraunhofer, and CEA-Leti, has called for the swift rollout of the "Chips Act 2.0". The original Chips Act, launched in April 2023 with a 43 billion euro budget, aimed to elevate Europe's global chip market share to 20% by 2030.

Despite this ambitious goal, a recent review by the German think-tank Interface suggests Europe might not achieve this target. However, the first Chips Act has drawn significant attention to the sector. Notable projects include TSMC's 10 billion euro plant in Dresden and Intel’s planned 30 billion euro facility in Magdeburg, Germany. Yet, Intel’s Magdeburg project faces delays and has yet to receive EU aid approval.

Balanced export policy

ESIA also highlighted the need for a balanced approach to export policy. While acknowledging the importance of technology protection and security, ESIA advocates for a supportive and incentive-based strategy rather than restrictive measures.

In related news, ASML, a key Dutch semiconductor equipment supplier, has been restricted from exporting its high-end products to China due to US-led sanctions. Dutch Prime Minister Dick Schoof stated that his government will consider ASML's economic interests when deciding on further export restrictions to China.

(With Reuters Inputs)