25 July 2023 · 1 min read
On 25 July, the Council of the European Union signed off the Chips Act, following the recent approval by the European Parliament.
The increasing need for boosting semiconductor manufacturing and ensuring Europe’s security of supply led to the final approval of the Chips Act. The legislative act has been proposed by the European Commission on 8 February 2022 as a framework of measures to strengthen Europe’s semiconductor ecosystem. Next, the European Parliament and the Council reached a political agreement on 18 April 2023, which has been formally signed off by the European Parliament on 11 July. With the final approval by the Council on 25 July, the Chips Act has been officially adopted and will enter into force across the EU following its publication in the Official Journal of the European Union.
Composed of three pillars, the Chips Act entails a multifaceted investment plan that aims at increasing semiconductor production in Europe. It sets the ground for channelling 43 billion euros in public and private investment with the goal of doubling Europe’s share of global semiconductor production to 20% by 2030.
In addition to approving the Chips Act, the Council has also passed an amendment which enables the establishment of the Chips Joint Undertaking.
