Lawmakers Urge European Commission to Accelerate Investment in AI Chip

Members of the European Parliament have urged the European Commission (EC) to introduce a new support program for the continent’s semiconductor industry, focusing on artificial intelligence (AI) chips and other critical technological advancements. According to Reuters, the lawmakers criticized the pace of progress under the original 2023 Chips Act, calling for a more robust strategy to secure Europe’s access to cutting-edge technologies.

A letter signed by 54 lawmakers from three major parliamentary factions emphasized the urgency of the matter, citing recent geopolitical developments as a warning that Europe cannot take its access to advanced technology for granted. Per Reuters, the letter stated, “We must take active steps to make the EU attractive as an R&D, production and investment location.” The lawmakers expressed concern that the current trajectory of semiconductor policy is insufficient to meet the EU’s long-term industrial needs.

The appeal follows a similar request from leading European chip industry firms last week. However, despite the growing demand for policy action, the Commission has not yet announced any specific plans for semiconductor investment. Reuters reported that the Commission intends to roll out five investment packages this year, but none explicitly address semiconductors—a notable omission, according to the lawmakers. The letter, addressed to Commission digital chief Henna Virkkunen, stressed that semiconductor development remains central to Europe’s industrial ambitions. A spokesperson for Virkkunen’s office was not immediately available for comment.

Read more: EU Approves €920 Million German State Aid for Infineon Semiconductor Plant

The first EU Chips Act, introduced in 2023, spurred a wave of investment but struggled to attract advanced chip manufacturers. Intel, for instance, ultimately abandoned plans for a large-scale factory in Germany. The letter described the need to address such shortcomings as increasingly urgent in light of current geopolitical realities.

As Reuters highlighted, the lawmakers also raised concerns about the growing technological competition between the United States and China. They warned that Europe must work to “protect its champions from the consequences of extraterritoriality,” referring to the practice of nations enforcing their own laws beyond their borders.

With pressure mounting from both political and industry leaders, the European Commission faces increasing calls to recalibrate its approach to semiconductor investment.

Source: Reuters