ESIA Urges for ‘Chips Act 2.0’ to Boost European Semiconductor Industry: U.S. News & World Report

The European Semiconductor Industry Association (ESIA) has called for a new legislation similar to the US CHIPS Act, urging European governments to boost domestic production of semiconductor chips. The ESIA’s proposal, dubbed ‘Chips Act 2.0’, aims to address the ongoing global semiconductor shortage that has impacted various industries worldwide.

The semiconductor industry plays a crucial role in powering modern technologies, from smartphones to electric vehicles. However, the industry has been facing challenges in meeting the growing demand for chips, exacerbated by the COVID-19 pandemic and geopolitical tensions.

ESIA’s ‘Chips Act 2.0’ calls for increased investments in research and development, as well as incentives for semiconductor companies to expand production capacity in Europe. The association argues that boosting domestic semiconductor production will not only help address the current supply chain disruptions but also strengthen Europe’s technological sovereignty.

The proposal comes in the wake of the US CHIPS Act, which aims to invest $52 billion in semiconductor manufacturing and research to bolster America’s chip industry. The ESIA believes that Europe needs a similar initiative to compete in the global semiconductor market and reduce its reliance on imported chips.

The call for ‘Chips Act 2.0’ has garnered support from industry leaders and policymakers in Europe. As the semiconductor shortage continues to impact various sectors, including automotive and consumer electronics, the need for a coordinated response to strengthen Europe’s semiconductor industry has never been more urgent.

With the global demand for chips expected to continue rising, the ESIA’s proposal for ‘Chips Act 2.0’ could provide a much-needed boost to Europe’s semiconductor sector and ensure its competitiveness in the digital age.