AMSTERDAM(Reuters) – The incoming European Commission should follow recommendations made by Mario Draghi for a more coherent industrial policy and launch a European “Chips Act 2.0” to remain competitive against the U.S. and China, industry group SEMI Europe said on Monday.

SEMI said it backed the report issued in September by the former ECB chief, including the need for a centralised EU budget, a “fast-track” approval process for strategic high tech projects, and additional spending to strengthen the European semiconductor ecosystem beyond the original 2023 Chips Act.

As the U.S. and China have rolled out export restrictions on chip technology and strategic minerals, the EU should make quick decisions on its own export policy “to protect EU strategic interests and to assert a strong EU voice on the global stage”, SEMI’s statement said.

SEMI is the broader of Europe’s two main trade semiconductor industry groups, with 300 members representing firms including top equipment supplier ASML, as well manufacturers and research centres.

The other is ESIA, representing chipmakers such as Infineon, STMicroelectronics and NXP.

In an interview with Reuters last week, ESIA’s chief also called for a Chips Act 2.0 that would support manufacturing in “legacy and foundational” chips, where the leading European firms face increasing competition from state-subsidised Chinese rivals.

The SEMI recommendations said that while it supported Chips Act goals such as attracting new manufacturing, the EU should also offer incentives to support new technologies and the semiconductor supply chain, which it said were increasingly important for the success of Europe’s green transition.

(Reporting by Toby Sterling; Editing by Alison Williams)