ESIA, the European semiconductor industry association, called for an “immediate Chips Act 2.0” if the bloc wants to maintain its momentum in the global race for technological leadership.
The group includes major chip manufacturers such as NXP and Infineon as well as research organizations such as Imec and Fraunhofer.
The EU's Chips Act came into force in September 2023. It aims to mobilise €43 billion in public and private investment to help the Union produce 20% of the world's semiconductors by 2030.
In a statement on Monday, the ESIA praised the law as a “fundamental building block”. However, the EU still needs to rethink its scope, streamline processes and close gaps, it argues.
TNW Conference 2025 – Back to NDSM on June 19-20, 2025 – Save the date!
Having concluded our incredible 2024 edition, we are excited to announce our return to Amsterdam NDSM in 2025. Register now!
One such step is to accelerate state aid programs – one of the most important regulatory mechanisms to attract large international companies and increase the number of domestic chip factories.
The EU has yet to approve state aid for Intel's planned €30 billion mega-factory in Germany. Last month it finally approved €5 billion to support TSMC's upcoming chip factory in Dresden – a year after the Taiwanese chip giant announced its willingness to invest in the bloc.
Open trade and a ‘holistic’ policy approach
A further step, according to ESIA, is to support open trade.
The group advocates a “more positive approach to economic security” instead of a defensive strategy “based on restrictive and protective measures”.
The ESIA proposal reflects the numerous export restrictions on ASML's chipmaking machines to China amid strained relations with the United States.
And while the Dutch government (under pressure from the US) is currently considering further restrictions, China is reportedly considering cutting its ties with ASML entirely, which would deprive the company of one of its biggest markets.
Finally, ESIA proposes continuous competitiveness controls and a coordinated, “holistic” industrial strategy involving all players in the sector.
This also includes a special body within the European Commission.
“A dedicated 'chip commissioner' responsible for the overall industrial policy approach in the semiconductor sector is a necessity,” the group said.
