EU secures €115Bln in chip investments following Chips Act launch
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According to EU President Ursula von der Leyen, European Semiconductor Manufacturing Company (ESMC) will be the first in Europe to produce high-performance chips.
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Members of European Parliament enter the plenary chamber as they prepare to vote at the European Parliament in Strasbourg, eastern France, Thursday, July 18, 2024. (AP)
European Commission President Ursula von der Leyen announced on Tuesday that the EU has successfully attracted a record 115 billion euros in public and private investments for the microchip industry within a year of implementing the European Chips Act, a comprehensive initiative aimed at bolstering the bloc's semiconductor production capabilities.
"Since we launched the European Chips Act, it has already attracted commitments of public and private investments in the order of 114 billion euros. So this is a true investment revolution for Europe's chip sector," von der Leyen said at the foundation stone ceremony for a new microchip manufacturing plant in Dresden.
The President noted that European Semiconductor Manufacturing Company (ESMC) will be the first in Europe to produce high-performance chips.
The new ESMC chips fab in Dresden is an endorsement of Europe as a global innovation powerhouse.
— Ursula von der Leyen (@vonderleyen) August 20, 2024
Bolstering Europe’s tech resilience.
And creating 11,000 jobs across Europe.
Today, we've authorised State Aid to the project worth around €5bn ↓ https://t.co/oefZcJgSdy
The European Chips Act was implemented in September 2023 with the aim of enhancing the EU's leadership in semiconductor technologies and support the digital and green transitions.
The bloc currently holds a 10% share of the global microchip market, and hopes to increase this to 20% by 2030.
The Act was proposed in 2021 to reduce dependency on foreign chip manufacturers, a vulnerability highlighted during the COVID pandemic.
It can also be viewed as part of a broader strategy influenced by US efforts to counter China's growing dominance in the global chip market.
For instance, the US successfully pressured the Dutch government to restrict ASML from selling its most advanced lithography machines to China in 2019.
The restrictions on ASML were formalized and expanded over the following years, particularly with a more comprehensive agreement reached in early 2023 involving additional export controls on semiconductor technology to China.
Read more: China condemns US efforts to disrupt semiconductor industry
