EU to Revise Chips Act Amid Production Challenges
The European Commission has announced plans to revise its Chips Act, which was established two years ago to boost semiconductor production in Europe. This revision comes on the heels of significant setbacks, including the cancellation of a €40 billion Intel project in Magdeburg, Germany, reports 24brussels.
While the Commission aims to address the numerous hurdles encountered by the initial legislation, its latest call for evidence suggests that the Act is “largely fit for purpose.” Nevertheless, the new measures could introduce funding schemes to support chip manufacturers and foster innovation, particularly for less-advanced chips, where Europe has a competitive edge.
The Commission’s inquiry highlights a crucial finding: neither the EU nor individual member states possess a comprehensive understanding of their semiconductor supply chains. This lack of clarity compromises the ability to ensure reliable access to these critical components. Consequently, officials are considering making the sharing of certain supply chain data mandatory for specific companies.
As part of the momentum towards revitalizing its semiconductor industry, the Commission’s review will also examine strategies to enhance the security and energy efficiency of chip production, in line with Europe’s broader sustainability goals.
A public consultation regarding the Chips Act review is open until 28 November, with a proposal anticipated in the second quarter of 2026. This revision represents a significant step in Europe’s effort to secure its position in the global semiconductor market and address the ongoing chip supply crisis.
