A draft shows the EU is relaunching the Chips Act to revive its struggling
semiconductor sector, requiring about €120 billion (~$140 billion) in
public-private investment by 2035. Chips Act 2.0 will emphasize demand-side
measures to boost uptake of domestically produced chips after the 2023 law
failed to expand EU market share. One major measure under consideration is a
roughly €30 billion chip fab for AI semiconductors and advanced 3nm nodes, to be
co-funded by the European Commission, member states and private firms. The
Commission would also broker links between chipmakers and buyers in telecoms,
defence and auto sectors so suppliers develop targeted technologies. The draft
will be submitted to legislators next week and remains subject to change.
