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Europe approves its $47 billion answer to Biden’s CHIPS Act — here’s everything that’s in it


Semiconductors have been dragged in the middle of the U.S.-China rivalry. Washington has been trying to convince allies to back its chip export restrictions to China.

Wong Yu Liang | Moment | Getty Images

The European Union has agreed a landmark plan to boost its chip industry.

The initiative, dubbed the European Chips Act, seeks to help the bloc compete with the U.S. and Asia on tech, and secure control over a critical bit of technology behind the world’s electronics products and devices.

The EU Parliament and 27 member states reached a deal on the legislation on Tuesday. In a statement, they said the new rules would aim to double the EU’s global market share in semiconductors from 10% to 20% by 2030.

What’s in the Chips Act?

It will also incentivize investments in manufacturing facilities and provide a framework for integrated production facilities and open EU foundries for security of supply.

Member states will also coordinate to monitor supply and forecast any shortages, the commission said. Since first announcing the plan last year, the EU has already attracted between 90 billion and 100 billion euros of public and private commitments for industrial deployment.

Why does it matter?

Global chip supply glut to start to normalize in the second half of the year, analyst says

Europe has been seeking to control more of its supply chain to reduce its reliance on foreign market players. The move is part of a push from the EU to achieve “digital sovereignty,” which refers to the idea that they have more control over critical technologies.

Can’t go it alone

Source: CNBC