EU proposes Chips Act 2.0
The European Commission has unveiled Chips Act 2.0, a new legislative proposal aimed at strengthening semiconductor manufacturing, reducing strategic dependencies and boosting Europe's capabilities in advanced chip technologies.
The European Commission on Wednesday proposed Chips Act 2.0, a new package of measures designed to strengthen the European Union's semiconductor industry and reduce its reliance on foreign suppliers for critical technologies.
Building on the original European Chips Act, the proposal seeks to reinforce Europe's existing strengths in semiconductor production while expanding capabilities in advanced chip manufacturing and design.
The Commission said the initiative aims to improve supply chain resilience and address strategic vulnerabilities in key parts of the semiconductor value chain.
According to the Commission, the EU remains dependent on third countries in several critical areas, including advanced chip manufacturing and semiconductor design.
Ensuring a stable supply of semiconductors is increasingly important for securing critical infrastructure, emerging technologies and Europe's broader digital economy.
The proposed legislation is intended to help the bloc maintain its position in the global semiconductor ecosystem while supporting the development of next-generation chip technologies.
It also seeks to strengthen Europe's ability to respond to disruptions in global supply chains.
Chips Act 2.0 forms part of a wider digital strategy that includes the Cloud and AI Development Act and the EU Open Source Strategy.
Together, the initiatives are intended to support a more competitive, secure and resilient European technology sector.
The proposal will now move through the EU legislative process before it can be adopted and implemented across member states.
