SEMI: EU must quadruple semiconductor funding

The EU is currently gathering input from stakeholders, including SEMI Europe, as it prepares its 2028–2034 investment framework. The European Commission is expected to announce the proposed budget in July.

SEMI called for the EU to allocate EUR 20 billion "across the entire semiconductor supply chain", a move the group says could unlock more than EUR 260 billion in combined public and private investment, the report continues.

The recommendation comes amid growing support among EU lawmakers and industry players for a potential “Chips Act 2.0” to address gaps in Europe’s semiconductor strategy. As previously reported by Evertiq, it is very unlikely that the EU will meet its target of a 20% share of the global market for microchips by 2030, according to a new report by the European Court of Auditors (ECA).

While the EU Chips Act has boosted activity in the semiconductor sector, it is unlikely to result in a significant shift in the EU's global market position. Europe's share of worldwide microchip value stood at 9.8% in 2022 and is projected to reach only 11.7% by 2030 — well below the 20% target.

“Semiconductors are the foundational component underpinning virtually every sector of the modern economy – Automotive, aerospace, industrial robotics and medical devices – and yet the EU continues to rely extensively non-European suppliers for the vast majority of its advanced chips and critical supply chain components,” SEMI said in its submission, as reported by Reuters.

Of the EUR 43 billion Chips funds, only EUR 4.5 billion is controlled by the European Commission. The rest is mostly under the responsibility of member states and private companies. A separate EU-level budget would help reduce disparities among member states, which currently prioritise their own national industries, the group added.