Starting today, the "European Chips Act" has come into force. This legislation from the European Union aims to bolster the design and production of semiconductors within EU territories and promote innovation in the sector. The ultimate goal is for the EU to double its global market share in the semiconductor industry to 20% by 2030.

Semiconductors or microprocessors are vital components across various sectors. They are found in technologies ranging from mobile phones and vehicles to infrastructures in health, energy, defense, communications, and broader industries.

The journey of the European Chips Act began in 2021 when Ursula von der Leyen, the President of the European Commission, announced it during her State of the Union address. The proposal was subsequently introduced in February 2022, and a political agreement with the EU Council and member states was reached in April of the same year.

Promotion of EU Technological Excellence: This involves bridging research with industry. Under the initiative "Microchip for Europe," the pillar focuses on transferring knowledge from scientific research to industrial production. It promotes the industrial application of innovative technologies. For these endeavors, the EU will contribute co-financing of €3.3 billion.

Stimulating Public and Private Investment: This pillar seeks to spur investments in semiconductor production facilities. A new category of pioneering facilities will be established, eligible for state aid, to ensure supply chain security and foster a resilient production ecosystem.

Member State Coordination Mechanism: Lastly, a coordination mechanism will be established between member states and the European Commission. The mechanism will streamline collaboration between states, monitor the semiconductor supply chain, assess demand, predict shortages, and if necessary, activate emergency measures in case of significant supply chain disruptions.