EU member states pile pressure on Brussels for Chips Act rethink
(2025/09/29)
- Reference: 1759150182
- News link: https://www.theregister.co.uk/2025/09/29/eu_chips_act_rethink/
- Source link:
Momentum is gathering behind calls for a Chips Act 2.0 to strengthen Europe's competitiveness in the semiconductor sector amid growing geopolitical uncertainty over global markets and supply chains.
The Semicon Coalition, a group now composed of all 27 EU member states, has signed a [1]declaration [PDF] setting out its goal for a stronger Chips Act to bolster Europe's position in the global semiconductor industry.
It follows earlier calls from European chipmakers to look beyond the Chips Act and do more to [2]support other areas of the sector , not just manufacturing, while the European Semiconductor Industry Association (ESIA) also [3]previously said it would like to see more public funding and greater input on decisions.
[4]
In response, the European Commission says it is already conducting an evaluation and review of the initiative, and opened a [5]public consultation and call for evidence earlier this month. Those with an interest in the sector are invited to share their views on how the [6]Chips Act is performing today and how it should be adapted.
[7]
[8]
The declaration says a revised version of the strategy must address Europe's vulnerabilities, and aim to make its chip industries stronger in response to geopolitical, technological, and environmental challenges. This is to build on existing strengths as well as emerging market opportunities highlighted in the [9]Draghi report on European competitiveness.
Those challenges include volatility with America - the Trump administration is using [10]every trick it can think of to force tech companies to dance to its tune - and China's attempts to push chipmakers in other countries out of business by [11]flooding the global market with cheap subsidized products.
[12]
However, on the strategic objectives for an updated silicon initiative, the declaration says the amibiton to achieve [13]20 percent share of the global semiconductor market by 2030 is currently unachievable – something many critics had already pointed out – because it lacks clear strategic direction on where and why Europe should lead in the semiconductor supply chain.
Instead, a revised Chips Act 2.0 must be "grounded" in three overall objectives: enabling a competitive European semiconductor ecosystem that can deliver prosperity; developing technological leadership at critical points in the supply chain; and building a stable and reliable supply of trustworthy semiconductors for Europe's critical industrial sectors.
These objectives need to be backed up by measurable targets, periodically reviewed by the European Commission working with member states and relevant stakeholders in the semiconductor ecosystem, the declaration proposes.
[14]
A long list of policy priorities is identified, most of which can be grouped into creating a strong ecosystem within Europe, ensuring enough funding, and developing a workforce with the right skills.
The latter would involve support for greater collaboration between academic institutions in the EU, with the establishment of a European Chips Skills Program. Fostering collaboration between industries across Europe and boosting R&D efforts all the way up to first deployment of a particular technology, are also part of the mix.
Funding suggestions include aligning national and European-level finance streams, as well as encouraging private capital to back up the public money.
Also mentioned are issues that hold back construction of new industrial infrastructure: permits, grid access, power supply, and other preconditions.
[15]Transatlantic chip war fizzles as EU and US framework confirms 15% tariff cap
[16]Fried chips: UK's nascent semi industry risks faltering
[17]Intel abandons chip plants in Germany and Poland, confirms more layoffs
[18]EU Chips Act heading for failure, time for Chips Act 2.0
"We will explore emergency permitting legislation to fast-track strategic investments in the semiconductor ecosystem," the declaration states, echoing similar measures being implemented in the US and UK to allow [19]projects seen as vital to side-step the usual planning checks.
The declaration issues a call to action, saying the signatories are ready to work with the European Commission on a revision of the Chips Act that will drive the development of a stronger local sector.
"Together, we can out-innovate, out-compete, and out-perform," it says rather optimistically, "ensuring Europe's leadership in the critical technologies that will define our future."
Luis Fernandes, IDC Senior Research Manager for EMEA Digital Infrastructure Strategies, said that a review is quite normal for this type of initiative since it has reached its two-year anniversary.
"That being said, it is hard to classify the first iteration of the European Chips Act as a resounding success," he told The Register .
"The first Act was focused on a limited number of projects. This next iteration has the potential to enlist other member states that might want to partake in this endeavor and expand the capabilities and resilience of the initiative," he added.
The Semicon Coalition was formed [20]earlier this year , initially composed of Austria, Belgium, Finland, France, Germany, Italy, Poland, Spain, and the Netherlands.
In a published statement, Minister Vincent Karremans of Economic Affairs for The Netherlands said: "Today all EU Ministers agreed on the fact that Europe's industrial strategy should adapt to the increasing geopolitical tensions in the world. This unique unity is a landmark step forward in securing future strategic autonomy and broad prosperity."
Peter Burke, Minister for Enterprise, Tourism and Enterprise in the Irish government, said: "This morning I am proud to stand with my European colleagues in endorsing the Declaration of the European Semiconductor Coalition. And I join with them in calling for a revitalized European Chips Act to secure Europe's place at the forefront of the global semiconductor industry."
"This is Europe's moment to align national ambitions with a shared vision: to build a semiconductor ecosystem which secures our sovereignty, drives innovation while ensuring prosperity for generations to come."
Gaurav Gupta, VP Analyst in Gartner's Emerging Trends and Technologies team, said that Chips Act 2.0 needs to better define the end goal.
"The original plan of 20 percent market share was too optimistic and broad – I would say it was rather vague. Once there is a better understanding of what the EU wants to achieve with 2.0, it should channel resources in the right direction. Then it would be a matter of execution," he told us.
Where the original act largely just followed what the US and China were doing, the EU should play to its strengths, Gupta believes, such as in research, automotive and industrial chips, emerging energy-efficient technologies, and wafer fabrication tech (think ASML).
"The EU doesn't have the same resources that China and US have with regards to investing in and leading in advanced semiconductor process nodes. It must rather rely on collaboration for certain aspects, while ensuring better utilization of its own resources.
"Another challenge [the] EU has is that with many participating nations drafting these policies, rather than crisp decision making, it can fall into the trap of interests that serve a particular entity. [The] EU needs to overcome those issues and be quick and aggressive." ®
Get our [21]Tech Resources
[1] https://ec.europa.eu/newsroom/dae/redirection/document/119761
[2] https://www.theregister.com/2025/03/20/european_chips_act_2/
[3] https://www.theregister.com/2024/09/04/esia_eu_semiconductor_wishlist/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://digital-strategy.ec.europa.eu/en/news/commission-launches-public-consultation-and-call-evidence-evaluation-and-review-chips-act
[6] https://www.theregister.com/2023/04/19/eu_chips_bill/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
[10] https://www.theregister.com/2025/09/28/trump_1_1_chip_rule_too_late/
[11] https://www.theregister.com/2025/09/12/china_polysilicon_monopoly/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2022/01/21/european_chips_act/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2025/08/21/eu_us_15_percent_tariff_cap/
[16] https://www.theregister.com/2025/08/20/uk_risks_faltering_in_global_semiconductors/
[17] https://www.theregister.com/2025/07/25/intel_european_retreat/
[18] https://www.theregister.com/2025/04/28/eu_chips_act_report/
[19] https://www.theregister.com/2024/09/17/objections_to_datacenter_builds_cni/
[20] https://digital-strategy.ec.europa.eu/en/news/strengthening-europes-semiconductor-future
[21] https://whitepapers.theregister.com/
The Semicon Coalition, a group now composed of all 27 EU member states, has signed a [1]declaration [PDF] setting out its goal for a stronger Chips Act to bolster Europe's position in the global semiconductor industry.
It follows earlier calls from European chipmakers to look beyond the Chips Act and do more to [2]support other areas of the sector , not just manufacturing, while the European Semiconductor Industry Association (ESIA) also [3]previously said it would like to see more public funding and greater input on decisions.
[4]
In response, the European Commission says it is already conducting an evaluation and review of the initiative, and opened a [5]public consultation and call for evidence earlier this month. Those with an interest in the sector are invited to share their views on how the [6]Chips Act is performing today and how it should be adapted.
[7]
[8]
The declaration says a revised version of the strategy must address Europe's vulnerabilities, and aim to make its chip industries stronger in response to geopolitical, technological, and environmental challenges. This is to build on existing strengths as well as emerging market opportunities highlighted in the [9]Draghi report on European competitiveness.
Those challenges include volatility with America - the Trump administration is using [10]every trick it can think of to force tech companies to dance to its tune - and China's attempts to push chipmakers in other countries out of business by [11]flooding the global market with cheap subsidized products.
[12]
However, on the strategic objectives for an updated silicon initiative, the declaration says the amibiton to achieve [13]20 percent share of the global semiconductor market by 2030 is currently unachievable – something many critics had already pointed out – because it lacks clear strategic direction on where and why Europe should lead in the semiconductor supply chain.
Instead, a revised Chips Act 2.0 must be "grounded" in three overall objectives: enabling a competitive European semiconductor ecosystem that can deliver prosperity; developing technological leadership at critical points in the supply chain; and building a stable and reliable supply of trustworthy semiconductors for Europe's critical industrial sectors.
These objectives need to be backed up by measurable targets, periodically reviewed by the European Commission working with member states and relevant stakeholders in the semiconductor ecosystem, the declaration proposes.
[14]
A long list of policy priorities is identified, most of which can be grouped into creating a strong ecosystem within Europe, ensuring enough funding, and developing a workforce with the right skills.
The latter would involve support for greater collaboration between academic institutions in the EU, with the establishment of a European Chips Skills Program. Fostering collaboration between industries across Europe and boosting R&D efforts all the way up to first deployment of a particular technology, are also part of the mix.
Funding suggestions include aligning national and European-level finance streams, as well as encouraging private capital to back up the public money.
Also mentioned are issues that hold back construction of new industrial infrastructure: permits, grid access, power supply, and other preconditions.
[15]Transatlantic chip war fizzles as EU and US framework confirms 15% tariff cap
[16]Fried chips: UK's nascent semi industry risks faltering
[17]Intel abandons chip plants in Germany and Poland, confirms more layoffs
[18]EU Chips Act heading for failure, time for Chips Act 2.0
"We will explore emergency permitting legislation to fast-track strategic investments in the semiconductor ecosystem," the declaration states, echoing similar measures being implemented in the US and UK to allow [19]projects seen as vital to side-step the usual planning checks.
The declaration issues a call to action, saying the signatories are ready to work with the European Commission on a revision of the Chips Act that will drive the development of a stronger local sector.
"Together, we can out-innovate, out-compete, and out-perform," it says rather optimistically, "ensuring Europe's leadership in the critical technologies that will define our future."
Luis Fernandes, IDC Senior Research Manager for EMEA Digital Infrastructure Strategies, said that a review is quite normal for this type of initiative since it has reached its two-year anniversary.
"That being said, it is hard to classify the first iteration of the European Chips Act as a resounding success," he told The Register .
"The first Act was focused on a limited number of projects. This next iteration has the potential to enlist other member states that might want to partake in this endeavor and expand the capabilities and resilience of the initiative," he added.
The Semicon Coalition was formed [20]earlier this year , initially composed of Austria, Belgium, Finland, France, Germany, Italy, Poland, Spain, and the Netherlands.
In a published statement, Minister Vincent Karremans of Economic Affairs for The Netherlands said: "Today all EU Ministers agreed on the fact that Europe's industrial strategy should adapt to the increasing geopolitical tensions in the world. This unique unity is a landmark step forward in securing future strategic autonomy and broad prosperity."
Peter Burke, Minister for Enterprise, Tourism and Enterprise in the Irish government, said: "This morning I am proud to stand with my European colleagues in endorsing the Declaration of the European Semiconductor Coalition. And I join with them in calling for a revitalized European Chips Act to secure Europe's place at the forefront of the global semiconductor industry."
"This is Europe's moment to align national ambitions with a shared vision: to build a semiconductor ecosystem which secures our sovereignty, drives innovation while ensuring prosperity for generations to come."
Gaurav Gupta, VP Analyst in Gartner's Emerging Trends and Technologies team, said that Chips Act 2.0 needs to better define the end goal.
"The original plan of 20 percent market share was too optimistic and broad – I would say it was rather vague. Once there is a better understanding of what the EU wants to achieve with 2.0, it should channel resources in the right direction. Then it would be a matter of execution," he told us.
Where the original act largely just followed what the US and China were doing, the EU should play to its strengths, Gupta believes, such as in research, automotive and industrial chips, emerging energy-efficient technologies, and wafer fabrication tech (think ASML).
"The EU doesn't have the same resources that China and US have with regards to investing in and leading in advanced semiconductor process nodes. It must rather rely on collaboration for certain aspects, while ensuring better utilization of its own resources.
"Another challenge [the] EU has is that with many participating nations drafting these policies, rather than crisp decision making, it can fall into the trap of interests that serve a particular entity. [The] EU needs to overcome those issues and be quick and aggressive." ®
Get our [21]Tech Resources
[1] https://ec.europa.eu/newsroom/dae/redirection/document/119761
[2] https://www.theregister.com/2025/03/20/european_chips_act_2/
[3] https://www.theregister.com/2024/09/04/esia_eu_semiconductor_wishlist/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://digital-strategy.ec.europa.eu/en/news/commission-launches-public-consultation-and-call-evidence-evaluation-and-review-chips-act
[6] https://www.theregister.com/2023/04/19/eu_chips_bill/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
[10] https://www.theregister.com/2025/09/28/trump_1_1_chip_rule_too_late/
[11] https://www.theregister.com/2025/09/12/china_polysilicon_monopoly/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2022/01/21/european_chips_act/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aNqtFY0vNwaP7h6eJlCVgAAAAQ8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2025/08/21/eu_us_15_percent_tariff_cap/
[16] https://www.theregister.com/2025/08/20/uk_risks_faltering_in_global_semiconductors/
[17] https://www.theregister.com/2025/07/25/intel_european_retreat/
[18] https://www.theregister.com/2025/04/28/eu_chips_act_report/
[19] https://www.theregister.com/2024/09/17/objections_to_datacenter_builds_cni/
[20] https://digital-strategy.ec.europa.eu/en/news/strengthening-europes-semiconductor-future
[21] https://whitepapers.theregister.com/
The EU exists to burn money.
VoiceOfTruth
They will produce a 500,000 page report, translated into numerous languages (to appease the French who suffer from a collective short man syndrome about their language). The language will be impenetrable, but could be summarised in one sentence: We must do something about this.
Hmm
codejunky
From the UK I am happy to hear this. Great news.
Re: Hmm
ChodeMonkey
Ah Mlle Junky! Keep fighting the good fight against the evil tyranny of the hated EU. Soon we shall be free of the yolk. (There is nothing worse than having yolk all over one's face, is there not?)
Can somebody explain why a "coalition" of all 27 member states is required in order to make a declaration about a consultation from the EC, comprised of the same 27 member states, to respond to an evaluation of an existing EU Act that was agreed by the same 27 member states?
Presumably another committee of all 27 member states will now be created to discuss the declaration about the consultation on the evaluation, and they will eventually respond with a summation? (But of course, now with extra AI...)