8 November 2023 · 3 min read
Author: Matilde Castleberry
In our previous article, we introduced the ‘EU Chips Act’ - a game-changing legislation - and explored its three main pillars. Today we will follow the financial trail to unveil the budget and its allocation, to understand how the EU plans to achieve a 20 percent market share in semiconductor manufacturing by 2030.
We will also be presenting the EC DEP CSA funded ALLPROS.eu latest initiatives - contributing to the 2030 European goal - that will connect SMEs and showcase their products and solutions.
Get ready to witness the economic gears in motion as we unveil the financial epicentre of innovation, and don’t miss the new opportunities powered by Allpros!
ECA’s budget and distribution
The EU has announced that it will mobilise more than € 43 billion of public and private investment to renovate the semiconductor sector.
The Chips for Europe Initiative - pillar 1 - is a major part of the overall ECA funding package, it will gather €11 billion of public investment up to 2030 both from the Union, the Member States, and private investments. Additionally, the manoeuvre will be complemented by equity support to start-ups, scale-ups, and other companies providing investment facilitation through a new EU Chips Fund for a projected overall value of €2 billion.
The Chips for Europe initiative will draw funding from the European Union's Horizon Europe program (€1.725 billion) and the Digital Europe program (€1.575 billion), resulting in a total of €3.3 billion. All capacity-building activities must be financed through the Digital Europe program, while related research and innovation activities should be funded through the Horizon Europe program. Most of its initiatives will be carried out under a reinforced, reoriented, and renamed version of the KDT Joint Undertaking - the ‘Chips Joint Undertaking’.
In addition to these investments, individual Member States may allocate resources for semiconductor-related initiatives in their recovery or resilience plans, utilising national or regional funds. Some Member States are already investing in a new IPCEI, supporting the setup of large manufacturing activities. This will come in addition to the loans that the European Investment Bank (EIB) may extend to support the semiconductor ecosystem as a whole.
How will the EU attract investments and create opportunities for SMEs?
To attract investments, the Regulation outlines two categories of facilities that qualify as contributing to Europe's security of supply. These facilities are referred to as 'Open EU foundries,' - establishments primarily engaged in designing and producing components for other industrial players - and 'Integrated Production Facilities,' - factories that create components for their own market. These facilities must be the ‘first of their kind’ in Europe, meaning that an equivalent facility in Europe does not exist.
Being recognized as either type of facility comes with several advantages granting access to a fast track permit for the construction and operation of the facilities. Moreover, they are provided with prioritised access to pilot lines established as part of the proposed Chips for Europe initiative, subject to specific conditions.
In order to boost the European semiconductor landscape, it is fundamental to have a dedicated space for SMEs and mid-caps where they can connect and showcase their related products and solutions within the semiconductor and chips space. The ALLPROS.eu marketplace will be out soon, a new tool that will complement the observatory and the thematic working groups. The marketplace represents a great stage for each player to exchange, coordinate and display innovative solutions. Stay tuned and don’t miss out on this amazing opportunity!
The ECA in the world arena
The European Union announced that, with the approval of the ECA, and by enacting several projects to boost production from both the digital and the physical world, the goal is to reach 20 percent of the market share in semiconductor manufacturing by 2030. This decision is the fruit of course, of the pivotal importance of semiconductors and of the destruction of GVCs. Additionally, it responds to the projected doubling of the global demand for semiconductors, by 2030 - as we had anticipated in our first article - which will impact not only Europe but also prompt countries worldwide to enact similar policies.
IDC has organised a must-attend webinar that will be held on November 23, 2023 at 17:00 CET, within the remit of ALLPROS.eu entitled ‘The state of the semiconductor market in Europe’. It represents the inaugural Market Trends Webinar Series that will shed light on the semiconductor value chain - a great opportunity to dive deeper into the Global trends. This first event will unveil industry trend forecasts, business trend awareness, skills related challenges and supply chain best practices. Online registration is free of charge but it is mandatory to register at the following link, participate in the discussion!
In our next article, we will depart for a far-reaching journey all around the world exploring the consequences of this increased demand. Hold tight to your first two tickets for the Semiconductor Express and be ready to discover Global Initiatives Powering the Semiconductor Sector. Stay tuned to learn how countries worldwide are shaping the future of this critical industry.
About ALLPROS.eu
The ALLPROS.eu project is funded by the European Commission Digital
Europe Programme, with the aim of coordinating stakeholders, consolidating the community and providing a knowledge platform. ALLPROS.eu is connecting key players in the industry and bringing forward ideas that can help address the challenges of the European semiconductor sector.
