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The EU Chips Act

Follow the latest news affecting the optics and photonics industry.

The EU Chips Act 

This page will aggregate official and highly trusted news of relevance to the optics community regarding the EU Chips Act. 

About the  European Chips Act

The European Chips Act was announced by the European Parliament in February 2022 as a response to global need to address the potential for supply chain shortages of semiconductors and other chips.

The proposed legislation would mobilise €43 billion in public and private investments including €3.3 billion in new direct funding aimed at creating “strategic autonomy” by boosting production and innovation and setting up emergency measures against chip shortages.

EU Chips is divided into three pillars:

  1. The Chips for Europe Initiative
    • supports technological capacity building and related research and innovation
  2. A Framework in Ensure Security of Supply
    • as proposed would increase investments in production capacity through 2030
  3. Monitoring and Crisis Response
    • creates a new governance structure to coordinate a crisis response mechanism

Update: On 25 July, the EU council gave final approcal to the EU Chips Act. This was the final step in the decision-making procedure. Now the Act will be implemented through Horizon Europe under the new Chips Joint Undertaking (formerly the Key Digital Technologies Joint Undertaking).

  • April 2023, the European Council and the European Parliament reached a provisional political agreement on the EU Chips Act. 
  • February 2023: The European Parliament adopted a draft bill that will be used to start talks with the European Council. (Press release) The bill is divided into two files:
  1. The overarching Chips Act, which outlines a strategy to bolster the homegrown semiconductor industry
  2. The regulation of the proposed €3.3 billion Chips Act industrial partnership under Horizon Europe, which will coordinate investment in semiconductor research and innovation.
  • 1 December 2022: the European Council adopted its general approach which formalised the Council's negotiating position regarding the European Parliament to begin their process to adopt its general approach before negotiations between the two bodies begin. (Press release)

Funding Calls & Announcements

Funding for EU Chips is expected to come from the amended Chips Joint Undertaking, Horizon Europe, the Digital Europe programme, and support from EU Member States. This information and the below links are based on official, published sources, but subject to change at any time:

For Potential Applicants (inside or outside the EU)

EU Chips is still under negotiation between the EU bodies and the national governments. EU Chips is aimed at increasing the production and manufacturing of chips in the EU and building on the capability in research and equipment making hardware for chips.

The long-term goal of the EU Chips Act is to boost Europe’s share of global chip production capacity to 20% from its 2020 level of around 10%.

(Final update on 8 August 2023)

Official Resources

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