The Chips Act was a good start, but if Europe really wants to play a meaningful role, it needs a larger portfolio. ESIA will pass its wish list on to the next legislative session.

ESIA, the lobby group of the European chip industry, shares its recommendations on the Chips Act in a report. According to ESIA, the budget set in 2023 is not sufficient to achieve the goals of the Chips Act. The lobby group calls on the next legislative period to work on a “Chips Act 2.0”.

Big ambitions, tight budget

In the summer of 2023, the European Parliament reached a final agreement on the Chips Act. The European Union’s goal is to locate ten to twenty percent of the global chip industry on its own territory by 2030. We already questioned the rather meager budget of 43 billion euros last year and ESIA shares the same opinion.

ESIA believes the Chips Act is a good start. It has managed to convince big names like TSMC and Intel to set up a factory on European soil, although Intel is unsure whether these plans will be implemented. However, a larger portfolio is needed to achieve the goals.

Outstretched hand to China

ESIA also has some recommendations at the administrative level. For example, the lobby group is calling for the appointment of a “chip commissioner” in the new legislative period to reduce the bridge between politics and industry. The report also contains recommendations on sustainability and staffing.

A final, striking section concerns free trade. It calls on the EU to encourage an open, global chip climate and cooperation with other regions. This is not said verbatim, but it is a request to the EU not to impose restrictions on China.

“ESIA is convinced that a more positive approach to economic security based on support and incentives is needed, rather than a defensive approach based on restrictive and protective measures,” the report said.