Expanding the EU’s Chip Strategy
The European Commission has been urged to broaden its plans for strengthening the semiconductor sector by incorporating “foundational and legacy” chips. Industry leaders argue that these components represent a core strength of Europe’s chip ecosystem and are crucial for maintaining competitiveness.
Call for a Comprehensive Chips Act 2.0
The European Semiconductor Industry Association (ESIA) has proposed a follow-up to the European Chips Act of 2023. This initiative, which allocated €43 billion to increase Europe’s share of the global semiconductor market to 20% by 2030, should now also prioritize foundational technologies alongside cutting-edge innovations.
Rene Schroeder, the new head of ESIA, emphasized the need for a balanced approach. “We’re calling for the Commission to introduce a Chips Act 2.0 that addresses both legacy and foundational semiconductors,” Schroeder said, highlighting the importance of aligning investments with Europe’s existing strengths.
Europe’s Strengths in Legacy Technologies
European chipmakers like Infineon, NXP, and STMicroelectronics are leaders in microcontrollers, power semiconductors, and sensors. These technologies are vital for Europe’s automotive and industrial sectors, underscoring the need to support legacy chip production.
Roadmap for Research and Business Alignment
Schroeder expressed the ESIA’s eagerness to collaborate with the Commission on a roadmap that aligns research investments with business needs. This would ensure that technological advancements can scale effectively within the market.
A Strategic Response to Global Competition
The Commission’s renewed focus on the semiconductor sector follows challenges posed by global supply chain disruptions and intensified technological competition, particularly between the U.S. and China. To address these, the EU is expected to leverage a broader array of policy tools aimed at fostering security, competitiveness, and growth in the chip industry.
Legacy Chips in the Spotlight
In July, the Commission launched a survey on the role of legacy chips in supply chains, considering their importance and the competitive pressure from China’s expanding manufacturing capacity.
Fostering Global Collaboration Over Protectionism
Schroeder highlighted the need for partnerships with key players such as the U.S., Japan, and South Korea rather than adopting restrictive or protectionist measures. He stressed that a collaborative approach would better position Europe in the rapidly evolving semiconductor landscape.
This push for a comprehensive strategy demonstrates the industry’s commitment to strengthening both advanced and foundational segments of Europe’s semiconductor ecosystem.
