EU Faces Challenges in Achieving 2030 Semiconductor Production Goals; Push for Chips Act 2.0
Friday, May 9, 2025 — Europe
Recent reports highlight that European lawmakers and industry groups are advocating for a "Chips Act 2.0", aiming to further bolster the region's semiconductor development. This push comes amidst concerns that the original objectives set by the EU's formal chip strategy in 2022 may not be met, necessitating significant reforms and upgrades.
The EU's ambition to achieve 20% of global chip production by 2030 appears increasingly out of reach, according to the latest assessments. The EU Chips Act, enacted in 2022 and effective from 2023, ambitiously targeted raising the EU’s share of the global semiconductor market from 10% to 20% by the end of this decade, including the domestic production of advanced chips at 2 nanometers and below. To accomplish these goals, the act planned to mobilize €43 billion in public and private investments, with €33 billion coming from the EU budget and the remainder from member states and the private sector.
Despite these initiatives, which have already attracted major semiconductor manufacturing projects such as Intel’s €33 billion investment in two new wafer fabs and a joint venture between TSMC and Bosch focusing on mature 28nm technology, several challenges persist. These include funding shortfalls, technological gaps, heavy reliance on imported raw materials, and high energy costs. Consequently, some projects have been delayed or even canceled.
Adding to these concerns, the European Court of Auditors (ECA) has projected that, at the current pace, the EU might only reach 11.7% of the global semiconductor market by 2030. In response, discussions around the Chips Act 2.0 are underway, with proposals suggesting a need for €20 billion in grants across the entire semiconductor supply chain, alongside strategic adjustments to support innovation in high-performance computing, AI, and quantum technologies.
Industry experts argue for a renewed semiconductor strategy with clear, achievable, and time-bound goals, backed by appropriate funding measures and regulatory adjustments when necessary. There is also an emphasis on leveraging Europe’s strengths, like ASML’s leadership in EUV lithography and Zeiss’s advancements in optical systems, to enhance its position in the global semiconductor landscape.
Furthermore, the trend towards collaborative efforts within the EU is becoming more pronounced, with nine countries forming the "Semicon Coalition" to boost self-sufficiency in chip production and strengthen their global standing. This coalition focuses on advancing technology sovereignty, enhancing supply chain resilience, and fostering innovation competitiveness.
Despite the hurdles, through legislative enhancements, innovative approaches, and increased cooperation, Europe aims to build a resilient ecosystem that supports the sustainable growth of its semiconductor industry.
It is important to note that the perspectives presented in this news article are for reference only and represent personal opinions.
