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EU Chips Act Set to Attract Over €100 Billion in Private Investment by 2030

 |  May 22, 2024

The European Chips Act is poised to attract more than €100 billion ($108.41 billion) in private investment to the European semiconductor industry by 2030, according to Thomas Skordas, an official from the European Commission.

Skordas made this announcement during a conference in Antwerp focused on the future of the initiative, which aims to bolster Europe’s position in the global semiconductor market.

The European Chips Act, Europe’s strategic response to similar initiatives in the United States, Japan, and China, has already generated significant interest and commitments, Skordas said. “We have received promises for investments of the order of €100 billion to expand the manufacturing capacity within the EU by 2030,”  highlighting the Act’s potential to transform the European semiconductor landscape, reported Reuters.

Related: European Union Agrees On Chips State Aid Plan

Although the Act promises funding of €43 billion, implementation relies heavily on contributions from individual governments, with the European Commission having approved limited actual funding. Despite this, industry players such as Intel and TSMC have committed to building new manufacturing plants in Germany, representing investments exceeding €30 billion this year.

Skordas, who works within the Commission’s digital unit, also revealed plans to finalize funding for research and development pilot lines in four sub-sectors of the chip industry by September. This includes a substantial €2.5 billion grant aimed at developing extremely advanced chips in Europe.

Source: Reuters