EU Plan to Boost Share of Global Chip Production Must Address Key Challenges

C. Drake

Summary Bullets:

• The EU Chips Act is intended to help Europe compete in the global market for semiconductors, while ensuring that EU industries are protected against future supply shortages.
• The EU’s strategy faces several hurdles, including the funding gap that exists between the EU’s support package and much larger investment packages in the US, South Korea, and China.

The EU Chips Act, announced by the European Commission on February 8, is intended to have far-reaching consequences for Europe’s ability to compete in the global market for semiconductors and for ensuring that EU industries – including automotive and medical device manufacturing – are better positioned to deal with future semiconductor supply shortages.