SEMI Backs Release of the European Chips Act

SEMI, the global industry association representing the electronics manufacturing and design supply chain, applauded the publication of the European Chips Act. Launched to reinvigorate semiconductor manufacturing and innovation, the act calls to quadruple Europe’s production capacity by 2030 and lays out measures to avoid future supply chain disruptions.

Under the act, the European Commission is called to step up investments in Europe’s capabilities to innovate in the design, production and packaging of advanced chips. Additionally, the act aims to strengthen the European Union’s R&D leadership and to address the skills shortages in the region.

“SEMI supports the European Chips Act and similar legislation and incentives designed to strengthen the resilience of the global semiconductor industry and create a more robust supply chain,” said Ajit Manocha, SEMI president and CEO. “The current chip shortage has extended lead times for semiconductor manufacturing equipment and materials, thus delaying efforts to expand semiconductor production capacity. To maximize the effectiveness of incentives aimed at expanding capacity and addressing extended supply chain issues, they should include investments in both new and existing semiconductor manufacturing equipment and materials facilities.”

“The European Chips Act is about bolstering Europe’s strengths,” said Luc Van den hove, chairman of the Semi Europe Advisory Board and president and CEO at imec. “By building on Europe’s unique assets, such as its leading equipment and material suppliers and its top-notch R&D, and by strengthening its manufacturing capabilities, both for mature as well as advanced technologies, Europe will reinforce its position in the global semiconductor ecosystem.

“This will secure Europe’s access to cutting-edge chip supplies that are indispensable for Europe’s dominant industrial markets, as well as for its flourishing deep-tech start-up scene,” Van den hove added. “Advanced chip technologies will pave the way to the next generation of innovative applications in autonomous cars, AR/VR, 6G-communication networks, smart robots, health diagnostics and personalized therapies.”

“SEMI and the regional electronics ecosystem see the European Chip Act as a major step forward to advance the resilience and growth of the semiconductor industry in Europe,” said Laith Altimime, president of SEMI Europe. “With the shortage of critical components impacting the growth of numerous industries globally, we applaud the introduction of this timely initiative.”

The European Chips Act is a key step forward to reinforce Europe’s capacities in semiconductors as a precondition for its future competitiveness, as well as a matter of technological security. The act is designed to build on the strengths of Europe’s semiconductor ecosystem and to address its weaknesses, supporting the European Union’s aims to develop a thriving, resilient supply chain and set measures to prepare for, anticipate and respond to future disruptions.

The European Chips Act is centered around five strategic objectives for the region:
• Strengthen its research and technology leadership.
• Build and reinforce its own capacity to innovate in the design, manufacturing, and packaging of advanced chips, and turn them into manufactured products.
• Put in place an adequate framework to substantially increase its production capacity by 2030.
• Address the acute skills shortage, attract new talent, and support the emergence of a skilled workforce.
• Develop an in-depth understanding of global semiconductor supply chains.

The unveiling of the European Chips Act is in line with similar initiatives to support semiconductor industry growth around the world. For example, in the US, current legislation under consideration calls for US$52 billion in funding to increase domestic semiconductor production. Similarly, South Korea’s National Assembly approved rules and tax incentives to support and safeguard the local semiconductor industry, while China established 15 local semiconductor funds in a bid to supply 70% of its own chips needs by 2025.