The members of the European Parliament have called on the European Commission (EC) to initiate a new support programme for the semiconductor industry, focusing on investment in AI chips and addressing technological gaps.
A letter from representatives of three major parliamentary factions, signed by 54 lawmakers, expressed concerns over the slow progress of the original 2023 Chips Act, Reuters reported.
Go deeper with GlobalData
“Recent geopolitical developments have shown that Europe cannot take continued access to advanced technologies for granted,” the letter stated.
It stressed the urgency of enhancing the EU’s attractiveness as a location for research and development, production, and investment.
The EC announced plans to launch five investment packages this year, focusing on AI, but is yet to detail plans for the semiconductor sector.
The letter, addressed to EC digital chief Henna Virkkunen, criticised the omission of semiconductors, noting their central role in the EU’s industrial ambitions.
The first EU Chips Act spurred investment but failed to attract advanced chipmakers, as evidenced by Intel’s decision to shelve plans for a large factory in Germany, the report said.
The letter also stressed the need for Europe to protect its industry from the impacts of extraterritoriality and escalating competition between the US and China.
In September 2024, the European Semiconductor Industry Association (ESIA) urged the EU to expedite aid, develop a revamped “Chips Act 2.0” and appoint an envoy to champion the sector.
The ESIA’s statement called for fewer export restrictions and quicker aid distribution, focusing on areas where European companies have existing advantages.
“A dedicated ‘Chips Envoy’ responsible for the overall industrial policy approach to semiconductors is a necessity,” the ESIA had said.
