EU parliament adopts Chips Act in big boost to industry

11 Jul 2023

Image: © VanderWolf Images/

MEP Dan Nica said that the EU has secured €3.3bn for chips research and innovation to address vulnerabilities in the supply chain.

The EU parliament has adopted new legislation today (11 July) that will greatly boost the bloc’s production of chips as it aims to compete in global semiconductor manufacturing.

In a 587 to 10 vote with 38 abstentions, the EU parliament adopted the latest measures which will attempt to increase innovation in Europe’s chips industry and establish emergency measures against shortages.

It will also fast-track permitting procedures and recognise their critical importance via a so-called “highest national significance statute”. SMEs will also benefit from increased support, especially in chip design.

Internal markets chief Thierry Breton took to Twitter to say that the EU Chips Act has been “massively adopted” today.

“The EU Chips Act will be an instrument of technological and industrial leadership for Europe. There is no industrial policy without factories and without semiconductors. The EU is back!” he said.

Proposed by the European Commission last year, the Chips Act aims to double the EU’s global market share in semiconductors from 10pc to at least 20pc by 2030. It was provisionally agreed by the European Council and Parliament in April.

The Act also has measures to protect Europe’s supply chain. The commission said recent semiconductors shortages highlighted Europe’s “dependency on a limited number of suppliers outside of the EU”.

Romanian MEP Dan Nica said that the EU has secured €3.3bn for research and innovation in semiconductors to “address the vulnerabilities” in supply chains exposed by the pandemic.

The parliament also backed provisions to strengthen international cooperation with strategic partners and on intellectual property rights, to guarantee competitive advantages and protection for the EU sector.

“We aim to boost technological capacity and are implementing measures to combat potential shortages. Europe is prepared to face the future challenges in the semiconductor industry, prioritising strategic autonomy, security, and a favourable business environment,” said Nica.

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Vish Gain is a journalist with Silicon Republic