EU Chips Act will aim to double Europe’s share of the global semiconductor market from 10% to 20% by the end of the decade. Credit: Intel Corporation The European Council and the European Parliament has reached an agreement on a deal that will invest $3.6 billion in EU funds — with the aim of attracting a further $43.7 billion in private investment — to build out the continent’s semiconductor manufacturing capabilities. Europe, like the U.S., is grappling with a fast-changing semiconductor marketplace, as governments around the world increasingly adopt more restrictive policies on the import and use of chips from overseas. The EU’s Chips Act is broadly similar in its goals to the US CHIPS and Science Act, which was signed into law by President Joe Biden in August 2022. Both the US and EU measures are meant as a response to post-pandemic supply chain issues that the semiconductor market has faced in recent years and to the US’ ongoing “chip war” with China, over security concerns posed by close governmental oversight of major silicon manufacturers in that country. Meanwhile, the new EU deal reached between the Parliament and the Council of Ministers, announced Tuesday, has three central “pillars.” The first is the “Chips for Europe Initiative,” which centers on building out manufacturing capacity through knowledge transfer and the establishment of “competence centers” around Europe. These centers will be designed to provide access to experimental data and technical expertise, letting subject-matter experts improve their skills and help create new designs. The second policy pillar centers on attempts to attract new investment by granting fast-track permitting to “first-of-its-kind” facilities in Europe and designating additional centers of excellence. EU Chips Act call for monitoring supply chain Finally, the Chips Act provides for a monitoring and crisis response system for the supply chain, which is designed to alleviate the supply shortages that resulted from the COVID pandemic and the war in Ukraine. The European Commission welcomed the news that an agreement had been reached in an official statement, saying that semiconductors are a critical geostrategic concern and that the Chips Act would buttress both Europe’s economic competitiveness in the area and its strategic position, by increasing the share of chips produced in the EU. “Recent shortages of semiconductors have highlighted Europe’s dependency on a limited number of suppliers outside of the EU, in particular Taiwan and South-East Asia for manufacturing of chips, and the United States for their design,” the Commission statement said. Margrethe Vestager, executive vice president of the EC, tweeted her own approval, as well, saying that boosting Europe’s ability to produce chips domestically makes it a bigger partner in the global supply chain, and helps enable societal advances. “We need chips to power digital and green transitions or healthcare systems,” she said. The Chips Act dates back to a European Commission proposal first issued in February 2022, and adopted by the European Council in December of that year. The European Parliament approved it this February, and the measure will now go back to the Council and the Parliament for formal ratification and adoption. Related content feature Windows 11 Insider Previews: What’s in the latest build? Get the latest info on new preview builds of Windows 11 as they roll out to Windows Insiders. Now updated for Build 22635.3566 for the Beta Channel, released on April 26, 2024. By Preston Gralla Apr 26, 2024 251 mins Small and Medium Business Microsoft Windows 11 news Dropbox adds end-to-end encryption for team folders Dropbox this week unveiled a range of features, including security updates and key management, and the ability to co-edit Microsoft 365 documents from within the file-sharing app. By Matthew Finnegan Apr 26, 2024 3 mins Cloud Storage Collaboration Software Productivity Software feature Android versions: A living history from 1.0 to 15 Explore Android's ongoing evolution with this visual timeline of versions, starting B.C. (Before Cupcake) and going all the way to 2024's Android 15 (beta) release. By JR Raphael Apr 26, 2024 23 mins Small and Medium Business Smartphones Android news analysis The unspoken obnoxiousness of Google's Gemini improvements Google's Gemini chatbot is seeing all sorts of upgrades on Android this week, but those advancements reveal a darker underlying reality. By JR Raphael Apr 26, 2024 12 mins Google Assistant Google Android Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe