European Commission wants to strengthen Europe's position in technology with the help of the European Chip Act

The next step will be to discuss the proposal with the European Parliament and the member states.

European Commission has presented the European Chips Act, a comprehensive set of measures that will strengthen Europe's resilience and position and help achieve digital and green transformation. 

Together with member states and international partners, European Commission plans to mobilise more than 43 billion EUR in private and public investments, build on Europe's strengths such as the world leading research and technology organizations, address remaining weaknesses and set out measures to prevent and anticipate potential future disruptions of supply chains. The European Chips Act will enable the EU to reach its 2030 target of doubling its current share of global chip production to 20%. 

The main components of the proposal are: 

• The Chips for Europe Initiative aims to pool resources from the European Union, member states and third countries associated with existing programs, as well as private sector actors, through the "Chips Joint Undertaking". The European Commission plans to allocate 11 billion EUR to strengthen existing research, development, and innovation. 
• A new framework to ensure security of supply aims to increase production capacity and attract new investments that will support the development of innovations in advanced production technologies and innovative and energy-efficient chips. The new framework will also include a Chip Fund, which will help start-ups to facilitate their access to finance. 
• A coordination mechanism between the Member States and the Commission aims to monitor the semiconductor value chain through information gathering and to map weaknesses and bottlenecks.  

The European Commission also presented an accompanying Recommendation addressed to the Member States. It is a tool with immediate effect that will allow the coordination mechanism between the Commission and the Member States to become operational immediately. 

The next step will be to discuss the European Commission's proposal with the European Parliament and the member states in the framework of the ordinary legislative procedure. If adopted, the Regulation will be directly applicable throughout the European Union. In the meantime, the European Commission calls on the member states to initiate coordination in line with the Recommendation to understand the current state of the semiconductor value chains, until the adoption of the Regulation.