EU member states push for stronger Chips Act 2.0
All 27 EU Member States have called for a reinforced “Chips Act 2.0” to secure Europe’s position in the global semiconductor industry, issuing a joint declaration urging stronger action to reduce vulnerabilities and strengthen technological leadership.
The declaration, published on Tuesday, outlines ambitions for a more forward-looking European Chips Act to address supply chain risks, support innovation, and ensure Europe’s competitiveness in the fast-moving global market for semiconductors.
Semiconductors power critical sectors such as automotive, healthcare, defence, energy, telecommunications, and artificial intelligence. The Member States stressed that a more resilient ecosystem is needed to safeguard Europe’s prosperity and strategic autonomy.
Earlier this year, the European Court of Auditors issued sharp criticism of the current Chips Act, describing it as too weak to meet the target of reaching a 20% global market share by 2030. According to the auditors, the EU’s share of the semiconductor value chain is instead likely to grow only marginally — from 9.8% in 2022 to 11.7% in 2030. The Court recommended that the Commission move swiftly to review the legislation and prepare a new strategy.
The European Commission has already begun reviewing the current Chips Act, which entered into force in 2023. As part of the review, the Commission launched a public consultation and call for evidence on 5 September, inviting stakeholders across the semiconductor value chain to contribute.
The push for a strengthened Chips Act comes as global competition in the semiconductor sector intensifies, with the EU seeking to reduce its reliance on foreign suppliers and advance its capacities and capabilities within Europe.