Chips Act 2.0: A Bottom-Up Revolution
In recent weeks, a surge of European coalitions and organizations has called for a more ambitious and effective Chips Act 2.0.
In recent weeks, a surge of European coalitions and organizations has called for a more ambitious and effective Chips Act 2.0. A growing consensus suggests that the initial EU Chips Act fell short of expectations, prompting renewed efforts from multiple fronts to push for meaningful improvements
A significant milestone in this movement is the formation of the Semiconductor Coalition by nine EU Member States—Austria, Belgium, Finland, France, Germany, Italy, Poland, Spain, and the Netherlands. This coalition signals a pivotal step toward deepening collaboration within Europe’s semiconductor ecosystem. The ministers of these countries have issued a joint statement reaffirming their commitment to enhancing European competitiveness by strengthening research, expanding production capacity, and fostering a highly skilled workforce.
A Shared Vision for Europe’s Semiconductor Future
The Semiconductor Coalition emphasizes the need for a well-coordinated strategy that ensures:
End-to-End Value Chain Accessibility – Critical elements of the semiconductor supply chain must remain accessible within EU borders.
Innovation & Industrialization – Cutting-edge, reliable, and innovative technologies should be developed and commercialized in Europe.
Expansion of Europe’s Leading Position – Existing strengths in the semiconductor industry should be fortified and expanded into new frontiers.
Accelerated Research Commercialization – Bringing research to market faster will be essential for global competitiveness.
By adopting synchronized policies, leveraging strategic investments, and forming key international partnerships, the coalition envisions Europe as a formidable global leader in semiconductors. To kickstart this vision, they propose working collectively as a ‘Coalition of the Willing’ to drive European semiconductor competitiveness forward. The European Commission has welcomed this initiative, viewing it as a powerful demonstration of Member States’ commitment to building a robust and resilient semiconductor ecosystem.
Beyond the Chips Act: A Call for Holistic Support
Meanwhile, European chipmakers are urging policymakers to go beyond the framework of the current Chips Act. Industry leaders argue that a successful strategy must support not just manufacturing but also critical elements such as research and development, materials, and design.
This week, a coalition of European semiconductor businesses, alongside SEMI Europe and the European Semiconductor Industry Association (ESIA), convened a roundtable at the European Parliament. Following this discussion, they submitted a joint declaration to Henna Virkkunen, the European Commission’s Executive Vice President for Tech Sovereignty, Security, and Democracy. Their message was clear: Europe needs a follow-up to the Chips Act, one that includes increased R&D funding, stronger investment incentives, and a comprehensive approach to global competitiveness.
According to ESIA Vice-President Frederique Le Grevès, the semiconductor sector has three key priorities:
A Clear European Semiconductor Strategy – Backed by a revised Chips Act with streamlined administrative processes.
Resilient Trade & Foreign Policy – Ensuring a stable and strategic approach to global partnerships.
A Sustained Focus on Innovation – Investing in the future to maintain Europe’s technological edge.
What appears to be missing from these statements is the infrastructure required to build additional capacity into the production of the new generation of Semiconductors. I'm sure that a policy will arise to increase the manufacturing footprint of Photon's and Quantum but the scaling of these technologies may be too far in the future. In my opinion Europe needs to start building a broader and smarter construction base to enable the rapid deployment of manufacturing capability.
The message is clear: Europe must act decisively. Governments, industry leaders, and policymakers must join forces to establish a truly competitive and self-sustaining semiconductor ecosystem, otherwise we will be left far behind in a race that takes too long to catch up in.
About the Author:
Richard Casey is the Global Semiconductor Program Lead for Arcadis and founder of www.globalsemiconductorprojects.com. He has written extensively on the Semiconductor Facility construction industry and is a founding member of the SiliconIsle community in Ireland.
