Full Breakdown
European Semiconductor Industry Pushes for Enhanced Chips Act 2.0
11/19/2025, 2:22:08 PM
Overview of the Current Landscape
The European semiconductor industry is advocating for significant revisions to the European Union's Chips Act as it prepares for the upcoming Chips Act 2.0. The industry group SEMI Europe has proposed a comprehensive 30-point policy report aimed at strengthening Europe's semiconductor ecosystem and enhancing its global competitiveness. This initiative comes as the EU Commission seeks to revise the existing Chips Act, which aims to attract 43 billion euros in investment for chip facilities across Europe.
Key Recommendations for Chips Act 2.0
SEMI Europe emphasizes the need for the EU to incentivize investments in computer chip equipment, materials, and design firms. The organization suggests that the EU should shift its focus from merely attracting advanced manufacturing to supporting projects that enhance European supply chains. This includes relaxing the stringent "first of a kind" criteria for state aid and establishing a budget of 20 billion euros for chip projects, quadrupling current funding levels.
The report identifies critical gaps in the existing framework, including uneven geographic distribution of projects and complex administrative procedures. To address these issues, SEMI Europe recommends several strategies, such as:
- Developing workforce programs to cultivate a skilled semiconductor talent pool.
- Streamlining public-private collaboration to expedite research and development commercialization.
- Simplifying funding access for small and medium-sized enterprises (SMEs) and startups.
- Enhancing coordination between EU and national policies to reduce bureaucratic hurdles.
Achievements and Challenges
The SEMI Europe Chips Act Report highlights the progress made under the current Chips Act, particularly in semiconductor research and development, manufacturing expansion, and supply chain resilience. However, it also underscores the need for a more resilient supply chain and a forward-looking policy framework that supports innovation and manufacturing capabilities.
Laith Altimime, President of SEMI Europe, stated, “Our findings underline the need for a more resilient supply chain and forward-looking Chips Act that supports innovation and front-end manufacturing.” The report stresses the importance of focusing on materials and equipment suppliers, design, and advanced packaging to ensure long-term technological sovereignty.
Official Statements & Responses
In response to the proposed recommendations, SEMI Europe has expressed optimism about the EU's commitment to building a competitive semiconductor ecosystem. The organization aims to work closely with EU institutions and member states to ensure that the next phase of the Chips Act delivers tangible progress.
Criticism & Opposition
While SEMI Europe presents a unified front advocating for these changes, there may be dissenting opinions regarding the feasibility of the proposed budget increase and the effectiveness of the suggested reforms. Critics may argue that the ambitious goals set forth could face challenges in implementation, particularly in aligning various stakeholders within the EU.
What's Next
The EU Commission is expected to complete its review of the Chips Act by March, ahead of schedule, and propose significant revisions. The outcome of these discussions will be crucial for the future of Europe's semiconductor industry and its ability to compete on a global scale.
