Chip – Image © Andrew Barker – Fotolia
(STRASBOURG) – Euro-MPs agreed Wednesday a draft bill to secure the EU’s supply of chips by boosting production and innovation, and setting up emergency measures against shortages.
The European Parliament was setting its negotiating position on two draft bills: one on the “Chips Act”, which aims to bolster technological capacity and innovation in EU Chips, and a second one on the Chips Joint Undertaking to increase investments for developing this type of European presence.
With recent shortage of semiconductors highlighting Europe’s dependence, the main focus of the new laws is to increase the EU’s share in global production capacity of semiconductors to 20%.
On the Chips Act, MEPs endorsed the text adopted by the Industry Committee, which focusses on next-generation semiconductors and quantum chips and on creating a network of centres to address the skills shortage and attract new talent on research, design and production. They also want to support projects aiming to boost the EU’s security of supply by attracting investment and building up production capacity.
A crisis response mechanism would be set up, with the Commission assessing the risks to the EU supply of semiconductors and early warning indicators in member states that could trigger an EU-wide alert. This would allow the Commission to implement emergency measures such as prioritising the supply for products particularly affected, or carry out common purchasing for member states.
In a separate vote, MEPs adopted the Chips Joint Undertaking proposal, implementing the measures foreseen under a “Chips for Europe” initiative. The scheme aims to support large-scale capacity building through investment into EU-wide and openly accessible research, development and innovation infrastructure.
“The EU Chips Act should establish Europe as a key player in the global semiconductors arena,” said the Parliament’s rapporteur on the Chips Act Dan Nica MEP, adding: “Not only does the budget need to be commensurate with the challenges and funded through fresh money, but the EU should lead in research and innovation, have a business-friendly environment, a fast permitting process and invest in a skilled work force for the semiconductor sector. Our goal is to ensure growth in Europe, prepare for future challenges and have in place the right mechanisms for future crises.”
The Parliament will now start talks with the Council on both files.
Further information, European Parliament
Procedure file: Chips joint undertaking
European Chips Act: Communication, Regulation, Joint Undertaking and Recommendation
