Green light to the European Chips Act, semiconductor production from 10 to 20%
Ready on “Chips Act” approved by the EU Parliament. A legislation that aims to support the supply of semiconductors in the EU, increasing production and instituting emergency measures. The new law, already agreed by Parliament and Council negotiators, was approved with 587 votes in favor, ten votes against and 38 abstentions and aims to create a favorable environment for chip investment in Europe, speeding up licensing procedures and acknowledging their critical importance through the so-called ‘Statute of Top National Importance’. Small and medium-sized enterprises will also benefit from increased support, particularly in chip design, to foster innovation.
Security in chip supply
The legislation will support projects aimed at improving the EU’s security of supply by attracting investment and boosting production. During negotiations with representatives of the Council, the deputies achieved 3.3 billion euros to finance research and innovation on the subject of chips. Furthermore, a network of competence centers will be created to address the skills shortage in the EU and attract new talent. According to the approved text, a crisis response mechanism will also be established, through which the European Commission will assess the risks for the EU supply of semiconductors. Early warning indicators in member countries will be used to trigger a shortage emergency at the European level.
EU production from 10 to 20%
A study by the EU Parliament shows that Europe’s share of global semiconductor production capacity is less than 10% with the new law we aim to arrive al 20%. Another 2022 Parliament analysis highlighted that the pandemic has revealed long-standing vulnerabilities in global supply chains, and the unprecedented shortage of semiconductors is a prime example. This shows what may be in store for years to come. These shortcomings have led, inter alia, to higher costs for industry and prices for consumers and have slowed the pace of recovery in Europe.
A Chips Act also for Italy
The “package” of measures therefore aims to create a favorable environment for investments in chips in Europe, speeding up authorization procedures and recognizing their importance through the so-called “statute of maximum national importance”. Europe will support projects aimed at improving the EU’s security of supply, attracting investment and boosting production. Small and medium-sized enterprises will also benefit from increased support, particularly in chip design, to foster innovation. In particular, in the context of state aid, SMEs will be able to receive funding of up to 90%, it drops to 80% for other types of companies,
Also in Italy the government accelerates on the Italian Chips Act. “I think I will be able to bring to the Council of Ministers before the summer break, in the first days of August – said the Minister of Enterprise and Made in Italy Adolfo Urso – the bill on microelectronics which will define the Italian National Plan, similar to the Chips European Act to make Italy the ideal country in which to invest in the digital economy and green technology“.