EU's Virkkunen Announces New Semiconductor Support Initiative

By Toby Sterling

AMSTERDAM (Reuters) - Europe is looking at additional ways to support its semiconductor industry, European Commission digital chief Henna Virkkunen said on Thursday, following calls this month from industry groups and lawmakers for a "Chips Act 2.0". 

The original 43 billion euro ($46 billion) Chips Act launched in 2023 failed to reach its top goals but is still regarded as having prevented a deterioration of Europe's industry in the face of larger state support programmes in the United States and China.

A second European programme should strengthen supply chains, plug gaps in advanced chipmaking and packaging, and build on existing strengths such as in chip equipment manufacturing, lobby groups argue.

"We are planning ... our next steps to the Chips Act because we see that we are not reaching the targets that we have set, so more is needed," Virkkunen told reporters in Amsterdam.

"I have also realised that there is strong support for a Chips Act Two already."

A group of nine countries is working on recommendations for a new chips push and will present findings to the Commission before the summer, the Dutch Economic Affairs Minister told Reuters on March 21.

(Reporting by Toby Sterling; Editing by Kirsten Donovan)