The European Union’s (EU) Chips Act gained final approval from representatives of member states, regulation which is expected to release €43 billion in funding and boost the region’s position in the global semiconductor market.
In a statement, the European Council revealed it had given its final approval, which was the last stage in the lengthy decision making process.
The final document will now be signed by its president and their counterpart at the European Parliament, which has already given the nod, before coming into force shortly afterwards.
Of the €43 billion expected to be released by the legislation and associated programme, €3.3 billion is set to come directly from the EU budget.
The act was originally outlined by the European Commission in February 2022 and is an attempt to stimulate the semiconductor industry within the EU by creating conditions for a local industrial base.
This includes attracting investment, promoting research and what the European Council described as preparing the continent for “any future chip crisis”.
Its ultimate aim is to double the region’s global chip market share from 10 per cent to 20 per cent by 2030, cutting reliance on imports.
The drive to up manufacturing facilities in Europe came in the wake of supply chain disruption to imports, especially from China, during and following the Covid-19 (coronavirus) pandemic and ongoing geopolitical tensions on chip supply.