Published by Global Banking & Finance Review®
Posted on May 6, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleSEMI suggests the EU quadruple its semiconductor spending to enhance its global market share, as part of a new Chips Act strategy.
By Nathan Vifflin
AMSTERDAM (Reuters) -The European Union should quadruple its spending on chips and allocate a separate budget for it, industry group SEMI said on Tuesday in its official response to EU consultations for its upcoming investment budget.
European lawmakers and industry groups are gathering momentum for a "Chips Act 2.0", pushing to quickly fill the gaps in the continent's semiconductor strategy.
The 27-country bloc is consulting industry stakeholders, including the Brussels-based European arm of SEMI, as it plans its long-term spending for the period between 2028 and 2034, with a budget announcement scheduled for July.
The European Commission will need to allocate 20 billion euros ($22.64 billion) across the entire semiconductor supply chain, triggering total investments of more than 260 billion euros from public and private entities, SEMI said in the letter seen by Reuters.
In late March, the European Court of Auditors said that the EU's objective to reach 20% of the world's chip market output by 2030 was unreachable at the current pace.
The European Commission has so far only contributed 4.5 billion euros into the 43 billion euro European Chips Act, while about 80% of the public funding came from the member states, the bloc's top audit institution said in the report.
SEMI said a separate EU budget would help level the playing field across the region, as each member state presently invest in their own national industry first.
"Semiconductors are the foundational component underpinning virtually every sector of the modern economy – Automotive, aerospace, industrial robotics and medical devices – and yet the EU continues to rely extensively non-European suppliers for the vast majority of its advanced chips and critical supply chain components," it said.
Cutting-edge and AI chips, along with quantum technologies, were some of the gaps the industry group identified in its response.
Europe is projected to reach 11.7% of the global semiconductor market share by 2030, just over half of its ambitious goal, according to the Court of Auditors.
($1 = 0.8835 euros)
(Reporting by Nathan Vifflin in Amsterdam, editing by Milla Nissi-Prussak)
The article discusses the recommendation by SEMI for the EU to increase its semiconductor spending as part of a new strategy.
The European Court of Auditors states the current pace of investment is insufficient to reach the 20% market share goal by 2030.
Chips Act 2.0 is a proposed strategy to address gaps in Europe's semiconductor strategy and boost investment.
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