Semiconductors, artificial intelligence and advanced technologies are increasingly central to European industrial competitiveness. However, the EU continues to significantly depend on production capacities and supply chains located outside Europe.
On 24 September, during the Competitiveness Council, European ministers discussed the Chips Act 2.0, the proposal presented by the European Commission last June to strengthen the European semiconductor industry, reduce strategic dependencies and support greater demand for chips produced in Europe.
A stronger European ecosystem
In discussions among member states, a broadly favourable position emerged for strengthening the European semiconductor ecosystem.
The debate is not only about chip production, but the entire value chain. Among the areas identified as priorities are power semiconductors, photonics, quantum technologies, advanced packaging, chip design and advanced materials.
The aim is to concentrate investments in segments where Europe already has significant industrial and technological expertise or can build a leadership position.
From research to market
One of the central points that emerged from the Council concerns the need to reduce the gap between research, innovation and industrial production.
Several member states have emphasised the importance of accelerating the transition of new technologies to the market, mobilising public and private investments, strengthening access to critical raw materials and investing more in skills.
The debate also highlighted the role of SMEs, startups and emerging ecosystems, which should be more involved in the development of the European semiconductor supply chain, avoiding the concentration of opportunities solely on large producers.
Less dependencies, without closing the market
Strengthening European autonomy does not necessarily mean closing off from the outside.
Member States have highlighted the need to reduce strategic dependencies while maintaining open markets and collaborations with international partners considered reliable.
A particularly important balance in a sector characterised by highly integrated global supply chains, where design, materials, production and assembly can involve companies located on different continents.
What it means for businesses
For European businesses, the Chips Act 2.0 is primarily a dossier to follow in the coming months.
The discussions initiated at the Council indicate a growing focus on industrial investments, advanced technologies, skills and the development of new European supply chains, with an explicit reference also to SMEs and startups.
For companies directly active in semiconductors, but also for those operating in sectors heavily dependent on chips – from automotive to energy, to digital technologies and industrial automation – the evolution of the European strategy could impact future investment and collaboration opportunities.
The debate is still ongoing: the Council on 24 September expressed political guidelines on the proposal, it did not introduce new rules or new tools immediately applicable to businesses.