Sources: EU plans to reform chip law to stimulate investment

Golden Ten Data reported on April 30 that, according to informed sources, the European Union's revised plan to stimulate the semiconductor industry will allow the EU executive body to invest directly in manufacturing and will prioritize the development of new technologies. This proposal, called the "Chips Act 2.0", is expected to be released by the end of May and aims to improve on the previous version from 2022. Previously, several major European chip production projects were delayed or canceled, and EU auditors stated that the EU is unlikely to meet its goal of doubling its share of global chip production. According to sources, the draft suggests authorizing the European Commission to directly invest in large cross-border projects, whereas previously its role was limited to funding research and approving member state aid. They also said projects supported by the European Commission will remain public-private partnerships. Allowing the European Commission to invest directly through funding could make it easier for businesses to plan projects spanning multiple countries and might provide a simpler way to obtain national funding than applying for national subsidies. Sources said the revised act will also focus on increasing research and development of key chip manufacturing technologies, including machinery, materials, and circuit boards.