AMSTERDAM, Nov 22 (Reuters) - The European Commission

should expand plans to strengthen its computer chip sector to

include "foundational and legacy" semiconductors, where much of

the region's strengths lie, the head of industry group ESIA said

on Friday.

The Commission is discussing a possible follow up to the

European Chips Act which was rolled out in April 2023 as a 43

billion euro ($46.96 billion) subsidy plan to boost Europe's

share of the global chip market to 20% by 2030.

The Commission's incoming tech policy chief Henna Virkkunen

pledged in hearings in the European Parliament last week to

focus on horizon technologies such as quantum computing in a

follow up to the 2023 legislation, which is now under

discussion.

Rene Schroeder, who took over as head of the European

Semiconductor Industry Association last week, said Europe's

chip industry supports Virkkunen's view but also sees the need

to strengthen parts of the existing chip ecosystem.

"We're calling for the Commission to come with a Chips Act

2.0 ... encompassing both legacy and foundational

semiconductors," Schroeder told Reuters in a phone interview.

European chipmakers such as ESIA members Infineon

, NXP and STMicroelectronics have

leading positions in existing generations of chipmaking

technology and continue to make advances in microcontrollers,

power semiconductors, and sensors. Europe's automotive and

industrial companies in turn rely on these chips.

Schroeder said ESIA is eager to work closely with the new

Commission on a roadmap to ensure that investments in research

are paired with business needs and can eventually scale up.

The new commission, which is focused on security,

competitiveness and growth, is expected to use a wider range of

policy tools to advance the chip industry. Shortages during the

coronavirus pandemic and U.S.-China technological rivalry

increased appreciation for its strategic significance.

The previous Commission in July launched a broad industry

survey on "legacy" chips, seeking views about how they are used

in supply chains and weighing the competitive threat posed by a

large buildout in manufacturing capacity by Chinese firms.

Schroeder said his group favours a mix of incentives and

partnerships with countries such as the United States, Japan and

South Korea "rather than a defensive approach that relies on

restrictive and protective measures."