European Chips Act to Attract Over €100 Billion in Private Investment

The European Chips Act aims to secure more than €100 billion in private investment for the European semiconductor industry by 2030. With firms like Intel and TSMC planning major plants in Germany, the initiative focuses on boosting manufacturing capacity, R&D, and design platforms within the EU.

Reuters | Updated: 22-05-2024 16:44 IST | Created: 22-05-2024 16:44 IST
European Chips Act to Attract Over €100 Billion in Private Investment

The European Chips Act is on track to help attract more than 100 billion euros ($108.41 billion) worth of private investment to the European semiconductor industry by 2030, a European Commission official said on Wednesday.

Thomas Skordas was speaking at a conference in Antwerp about the future of the initiative, which is Europe's answer to similar programmes in the United States and Japan and to China's support for its domestic computer chip makers. The European Chips Act has led to "promises for investments of the order of 100 billion euros to expand the manufacturing capacity within the EU by 2030", Skordas said.

The European Union Chips Act, billed as offering funding of 43 billion euros, relies heavily on individual governments with the Commission so far approving very little actual funding. However, firms including Intel and TSMC have announced plans to build plants in Germany at a cost of more than 30 billion euros this year.

Skordas, an official at the Commission's digital unit, said the commission expects to finalise funding for R&D pilot lines in four sub-sectors of the chip industry by September, including a 2.5 billion euro grant for developing extremely advanced chips in Europe. Skordas said unspecified funding for another pilot line to develop photonics, or chips that use light instead of electricity, is still in the works.

The Commission is also arranging funding for a European design platform to give companies, academics and startups access to the software tools needed to design their own chips. Most advanced chipmakers design chips but leave the manufacturing to specialists such as TSMC, Samsung or Intel. "In July, we expect to open the call for the consortium that will be responsible for designing and developing this platform at the European level," Skordas said. ($1 = 0.9224 euros)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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