Europe to Incentivise Governments to Purchase Chips from EU Startups
EU Chips Act 2.0: Strategies to Boost Domestic Semiconductor Industry
By Foo Yun Chee
Background and Current Reliance on Foreign Chips
BRUSSELS, May 28 (Reuters) - The European Commission wants governments to buy chips made by EU startups as it seeks to reduce Europe's reliance on U.S. and East Asian products, a document seen by Reuters shows.
The proposal dubbed Chips Act 2.0 supplements the original Chips Act implemented three years ago, which has so far failed to achieve its goals of attracting advanced manufacturing and doubling the bloc's global chip market share to 20% by 2030.
EU's Market Share and Strategic Concerns
EU tech chief Henna Virkkunen will on June 3 lay out details of the latest attempt to develop and control critical technologies and services, which has been driven mainly by tensions with the United States and China and their dominance in these areas. Europe makes about 10% of global semiconductors.
Key Features of Chips Act 2.0
Shift from Supply to Demand Side Measures
While the Chips Act focused on supply side measures, the Chips Act 2.0 will focus on the demand side, the EU document said.
Demand Accelerators and Offtake Agreements
"Through Demand Accelerators, the Chips Act 2.0 will also aim to boost the use of EU-designed and EU-made chips by linking suppliers with users via offtake agreements and a demand forum," the document said.
Public Innovation Procurement
"To stimulate demand and support EU-based start-ups and scale-ups, the Chips Act 2.0 will deploy public innovation procurement, as a strategic tool," the paper said.
Environmental Approvals for Chip Facilities
The Commission also proposed fast-tracking environmental approvals for chip facilities.
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
