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Semiconductor body calls for EU 'Chips Envoy', more support
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Semiconductor body calls for EU 'Chips Envoy', more support
Sep 2, 2024 8:59 AM

AMSTERDAM, Sept 2 (Reuters) - Europe's main computer

chip industry group ESIA called on the European Union on Monday

to speed up aid, draw up a revamped "Chips Act 2.0" support

package and name an envoy to champion the sector.

In a statement, the group said chip policy under the

incoming EU Commission should feature fewer export restrictions,

focus on areas where European companies already had advantages,

and that aid should be awarded more quickly.

"A dedicated 'Chips Envoy' responsible for the overall

industrial policy approach to semiconductors is a necessity," it

said.

The group - which represents chipmakers Infineon,

STMicroelectronics, NXP, top equipment maker

ASML and research bodies imec, Fraunhofer and CEA-Leti

- said the bloc should roll out an "immediate Chips Act 2.0".

The first E.U. Chips Act, rolled out in April 2023, was

billed as a 43 billion euro subsidy plan aimed at boosting

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

A recent critical review by German think-tank interface

found that while Europe may not be on track to meet that goal

set by Commission industry chief Thierry Breton, and has not had

15% of the global market over the past 40 years, the first Chips

Act did focus policymakers' attention on the industry.

Major projects under the first Chips Act included a 10

billion euro ($11 billion) plant that Taiwan's TSMC

broke ground on last month in Dresden, and a 30 billion euro

project planned by Intel ( INTC ) in Magdeburg, Germany.

However amid Intel's ( INTC ) business woes, the Magdeburg project

has yet to win EU approval for aid and it has been delayed,

raising questions as to whether it will be built.

On export policy, ESIA said that it acknowledges the need to

protect technology and ensure security.

However, "a more positive approach to economic security

is required which is based on support and incentives, rather

than a defensive approach that relies on restrictive and

protective measures," it said.

ASML has been barred from shipping the upper half of its

product range to customers in China as the European Union and

Netherlands aligned with U.S.-led restrictions aimed at slowing

Chinese technological and military advances.

Dutch prime minister Dick Schoof on Friday said his

government will weigh ASML's economic interests when it further

tightens rules restricting exports to China.

($1 = 0.9040 euros)

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