European Union Member States Prepare Chip Law 2.0

A group of EU countries plans to draft a new version of the European chip law by summer to provide assistance to the European industry as quickly as possible, said Dutch Minister of Economic Affairs on Friday.

Austria, Belgium, Finland, France, Germany, the Netherlands, Italy, Poland, and Spain are doing their ‘homework for the new Chip Law,’ said Minister Dirk Beljaarts, referring to a possible new European funding program for the semiconductor industry, following the 2023 law that initiated a wave of investment in the industry but did not attract manufacturers with cutting-edge technology.

Funding under the current law has primarily been provided by member states, but projects had to be approved by the European Union, and the process was considered too slow by companies, although it provided a counterbalance to more extensive state support programs in the sector in China and the US.

The new law is expected to go into detail and set more specific goals, emphasized the Dutch minister.

– To stimulate the sector, we need to ensure funding from private and public sources and ensure it reaches a broader base, including small and medium-sized enterprises – explained Beljaarts.

Europe has top players in research and development in the equipment sector, including Dutch chip-making machinery manufacturer ASML, but it needs to fill gaps in the segments of chip integration into housings and sophisticated manufacturing, following Intel’s withdrawal from building a plant in Germany.

The coalition is also checking the expected ‘internal demand’ in European countries to ensure that companies are confident their investments will pay off, he said.

The nine-member group was established, according to him, on March 12, and its goal is to assist the European Commission, not to undermine its work.

The Commission stated that it ‘strongly supports’ the initiative.