Key Points
- All 27 EU member states have joined a coalition to revamp the EU’s “Chips Act.”
- The coalition, led by the Netherlands, says the original plan is unrealistic.
- They want to shift the focus from a 20% market share goal to securing critical technologies.
- The push is backed by over 50 major chip companies, including Nvidia and Intel.
Every single member of the European Union has now joined a Dutch-led coalition pushing to overhaul the bloc’s ambitious “Chips Act.” The move signals a major, unified effort to rethink Europe’s strategy for competing in the global semiconductor race.
The “Semicon Coalition” was formed in March by the Netherlands and eight other countries. On Monday, they officially presented their demands to the European Commission, with the backing of all 27 EU member states. “Today all EU Ministers agreed on the fact that Europe’s industrial strategy should adapt to the increasing geopolitical tensions in the world,” said the Dutch economic affairs minister.
The coalition is arguing for a “Chips Act 2.0.” They say the EU’s original goal of capturing 20% of the global chip market by 2030 is unrealistic and needs to be replaced. Instead, they want a more targeted approach that focuses on securing critical technologies, streamlining project approvals, and enhancing skills and funding across the entire semiconductor supply chain.
The first EU Chips Act did spark a wave of investment, but it suffered a major setback when Intel scrapped its plans for a massive new factory in Germany. The European Court of Auditors has recently stated that the 20% market share goal is “unreachable” at the current pace.
The industry also backs the push for a new strategy. The semiconductor trade group SEMI, along with over 50 major companies including Nvidia, ASML, and Intel, has all signed on to the coalition’s declaration. They are also calling for the EU to set a separate, dedicated budget for chips, even suggesting the bloc should quadruple its current spending.
