The EU’s 2023 “Chip Act” failed to achieve its stated goals due to bureaucratic hurdles and limited financial support from the authorities, so a coalition of nine countries is now pushing for a second round of subsidies for the local semiconductor industry.
Image source: GlobalFoundries
The initiative group includes Austria, Belgium, France, Finland, Germany, Italy, Poland, Spain and the Netherlands. It aims to strengthen Europe’s chip manufacturing capabilities, mobilize investor activity, and attract new personnel to the semiconductor sector. Dutch Minister of Economy Dirk Beljaarts emphasized that the new stage of the program should be more focused. According to him, it is necessary to attract both private and public capital to the financing of the semiconductor industry, and representatives of small and medium-sized businesses should also benefit from subsidies. Priority will be given to the areas of chip packaging and processing of silicon wafers using advanced lithography.
Intel, as is known, has frozen its plans to build two large plants in Germany. Its advanced site in Europe in such conditions will remain the plant in Ireland. Other representatives of the European semiconductor industry intend to ask officials for direct subsidies in various segments of production and development. The European “Chip Act” of 2023 implied the allocation of 43 billion euros for such needs, but market participants do not see any particular benefits from its implementation, which has stalled for a number of reasons. The new stage of the initiative should advance the European industry further.