- The EU aims to double its semiconductor market share to 20% by 2030.
- 43.000 billion euros are invested in research and manufacturing.
- Three pillars are established: innovation, security of supply and crisis management.
- The law reduces technological dependence on Asia and the US, strengthening local industry.
The arrival of the European Chip Law marks a turning point in the semiconductor industry within the European Union. With a growing demand for these essential components and a external dependency which has put the production of multiple sectors in jeopardy, the EU has decided take strategic measures to strengthen its technological sovereignty.
In this article, we will explore in detail the European Chip Law: its objectives, its impact on the industry and how it seeks to ensure the supply of semiconductors on the continent. In addition, we will analyze the fundamental pillars that support this ambitious plan and the investment that are being allocated for its implementation.
What is the European Chip Law?
La European Chip Law It is a set of measures approved by the European Union with the aim of Strengthening the semiconductor sector within the continent. This initiative arose in response to the global chip crisis that affected multiple industries, from the automotive industry to medical technology.
With an investment of more than 43.000 millones de euros, the EU aims to double its share of the global semiconductor market, going from 10% current to 20% in 2030To this end, the law is structured around three fundamental pillars addressing research, production and crisis management in chip supply.
Why is a specific law for chips necessary?
Semiconductors are key elements in virtually every modern electronic device. From smartphones to telecommunications systems and medical equipment, chips are essential to the functioning of our digital society.
However, the global chip shortage has highlighted the EU's high dependence on external suppliers, especially from Asia and the United States. This situation has led the European Union to Look for solutions to strengthen their production capacity and reduce their vulnerability to disruptions in the supply chain.
The three pillars of the European Chip Law
The European Chip Law is structured in three great pillars which lay the foundations for meeting the EU's semiconductor targets:
1. Chips for Europe Initiative
This first pillar seeks to strengthen Europe's technological leadership in the semiconductor industry. Funds are allocated to boost research and innovation, facilitating transition from laboratories to the factories.
Some key actions within this initiative include:
- Creating pilot production lines advanced.
- The development of a design platform cloud-based.
- The establishment of competence centers
- The momentum of quantum chips and new technologies.
2. Security of supply
To ensure the availability of chips and reduce dependence on third countries, the EU is promoting the factory construction within the continent. Two types of strategic facilities have been defined:
- Integrated production facilities: factories that develop and manufacture chips autonomously.
- Open Foundries: plants that allow third parties to design and manufacture chips in the EU.
3. Crisis response and risk management
The EU has implemented a early warning mechanism to anticipate future supply crises. In addition, the European Semiconductor Council, responsible for coordinating the response to possible interruptions in the production chain.
Investment and financing of the European Chip Law
To achieve these ambitious goals, the EU has allocated an unprecedented investmentThe initial public funds of 43.000 billion euros are expected to be complemented by private capital and contributions from Member States.
The money will be distributed as follows:
- 3.300 billion euros for the Chips for Europe Initiative.
- Grants and aid to companies that invest in manufacturing infrastructure.
- Promotion of research and development in universities and technology centres.
Impact on European industry and economy
The implementation of the European Chip Law will have a significant impact in European industry. The main positive effects include:
- Reducing external dependency, ensuring a stable supply of chips.
- Boost to the technology industry and employment in high value-added sectors.
- Promotion of innovation, allowing the EU to stay at the forefront of emerging technologies.
The future of the European semiconductor industry looks promising with the implementation of this law. However, success will depend on the correct implementation of the proposed strategies and the collaboration between the public and private sectors.
Table of Contents