In a bold move to secure its position in the global semiconductor market, the European Union has given the green light to “The EU Chips Act,” a groundbreaking initiative that will see a staggering €43 billion investment in building semiconductor fabs across Europe. The decision comes as the EU sets its sights on doubling its current global market share from 10% to an ambitious 20% by the year 2030. With such substantial funding, the semiconductor market is poised to shatter the $1 trillion barrier, marking a significant milestone for the industry.
The EU Chips Act promises not only economic growth but also a surge in job opportunities throughout Europe. By fostering the development of semiconductor manufacturing, the act aims to boost research and development, paving the way for technological advancements and innovation on the continent. Additionally, reducing reliance on foreign sources, especially China, for critical electronic components is a strategic move aimed at enhancing Europe’s autonomy and security in the tech world.
The European Council’s press release echoes the proactive approach adopted by Intel, with the company announcing its own plans to construct fabs in Europe. Moreover, individual EU member states are actively joining the mission, with Germany leading the charge, committing a remarkable €20 billion to invest in the semiconductor industry. Notably, new fabs are also in the works for countries like Poland and Ireland, signifying a united effort to propel Europe to the forefront of semiconductor manufacturing.
This momentous decision comes a year after the European Union first unveiled its ambitious strategy for semiconductor manufacturing leadership. Meanwhile, across the Atlantic, the United States took similar action with the passage of the CHIPS Act, which pledged an impressive $52 billion to advance the industry.
Today’s approval of the EU Chips Act by the Council of the European Union marks a pivotal moment for the region’s technological ambitions. The final step awaits, as it is now set to undergo signature by the heads of the Council and the European Parliament before being officially published and put into force. As the world eagerly watches the semiconductor landscape evolve, one thing is certain – the European Union is positioning itself as a formidable contender in the industry, ushering in a new era of growth and influence on the global stage.