On April 30, insiders disclosed that the European Union is poised to unveil an updated version of its semiconductor industry stimulus plan, dubbed the 'Chips Act 2.0,' by the end of May. This revised plan will empower EU executive bodies to directly invest in the chip manufacturing sector and place a premium on pioneering new technologies, marking a significant enhancement over the 2022 iteration.
Previously, numerous large-scale chip production initiatives across Europe encountered setbacks, including delays or outright cancellations. EU audit institutions have voiced concerns that the EU will face challenges in realizing its ambition to double its global chip production share.
According to insiders, the fresh draft proposes granting the European Commission the authority to directly invest in sizable cross-border projects—a departure from its prior mandate, which was confined to funding research and sanctioning member state aid. Despite this shift, these projects will continue to operate as public-private partnerships. The European Commission's direct investment is anticipated to streamline the planning of multinational projects for companies, potentially offering a more straightforward alternative to seeking national subsidies.
Furthermore, the updated act will ramp up research and development investments in pivotal chip manufacturing technologies, encompassing machinery, materials, and circuit boards.