EU Plans €120 Billion Chips Act 2.0 to Revive Semiconductor Output by 2035
Updated
Updated · Bloomberg · May 28
EU Plans €120 Billion Chips Act 2.0 to Revive Semiconductor Output by 2035
1 articles · Updated · Bloomberg · May 28
€120 billion in public-private investment would be needed by 2035 under the EU’s draft Chips Act 2.0, a reboot aimed at reviving local semiconductor production.
The new plan shifts toward practical measures to boost demand for chips made in Europe, rather than relying mainly on supply-side support.
That reset follows the bloc’s 2023 Chips Act, which failed to increase the EU’s share of the global semiconductor market.
The proposal underscores Europe’s struggle to rebuild a domestic chip industry despite years of industrial-policy efforts and strategic concern over supply dependence.
After its first plan failed, can Europe's €120 billion bet finally secure its own chip supply against global rivals?
With billions pledged for new fabs, who will actually run them amid Europe’s severe shortage of skilled tech talent?
Europe’s €120 Billion Chips Act 2.0: The Race for Semiconductor Sovereignty by 2035
Overview
The EU Chips Act 2.0 marks a major step in Europe's push for technological sovereignty by revamping its approach to the semiconductor industry. Facing intensifying global competition, the EU is making bold moves with significant public funding and strategic industrial partnerships. These efforts aim to build a more integrated and resilient semiconductor supply chain, supporting vital sectors like automotive and the Internet of Things that depend on advanced chip technology. By strengthening its semiconductor ecosystem, Europe seeks to reduce reliance on external sources and secure its position in the global market.