Ground level: Europe lags behind in semiconductor production. Despty is trying to improve it to spend billions of euros. But a new initiative indicates the intention of the continent to compete with major semiconductor markets such as the United States and Asia.
A coalition of nine European Union countries led by the Netherlands is designed to accelerate schemes for a potential second funding package under the European Chips Act. The objective of this initiative is to submit proposals until summer after mixed results of the 2023 Chips Act, which, despite preventing the decline in Europe’s industry, failed to fulfill its major objectives due to the slow approval procedures provided by the US and China and low state support.
The Dutch economy minister Durk Beljarts emphasized the need for a more targeted approach in the possible second funding program. “We need to allocate funds,” Beljarts told Reuters. “Both private and public funds to pursue the sector, also to ensure that there is a trickle-down effect and that (small and medium-sized) companies also benefit.” The objective of this strategy is to address gaps in areas such as chip packaging and advanced production, especially after Intel sheltered plans for a state -of -the -art factory in Germany.
The alliance, including Austria, Belgium, Finland, France, Germany, Italy, Poland, Spain and Netherlands, is focused on three main priorities: increasing production capabilities, raising public and private investment, and promoting talent within the field.
Europe claimed strong research and development capabilities, leading chipmaking-tools market with companies such as ASML. However, the region lags behind in advanced chip production, only with Intel using state -of -the -art technology in Ireland. Industry stakeholders include prominent chip manufacturers such as Bosch, Infinon, NXP and Stimicoelectronic with equipment suppliers ASML and ASM.
Following a meeting at Brussels, organizations such as ESIA and Semi Europe are formally ready to propose their requirements to Henna Virkunan, a digital officer of the European Commission. Their requests include semiconductor design, manufacturing, R&D, direct support for materials and equipment.
The European Chips Act launched in 2023 The objective was to reduce the dependence of Europe on foreign semiconductor supply and increase the technical sovereignty of the region. However, it has faced challenges, including lack of skilled workers and slow approval procedures.
The Act has a total investment target of € 43 billion, in which chips play an important role in reducing the difference between research and commercialization with joint ventures. Despite these efforts, critics argue that government intervention may not be the most effective strategy, as it may distort competition and favor disabled producers.
