A New Chapter in Semiconductor Manufacturing in the EU – From the European Chips Act to European Chips Act 2.0

Purpose and Significance of the European Chips Act

In 2022, the European Commission introduced a landmark legislative package designed to boost the EU’s semiconductor industry in response to the continent’s growing reliance on chip imports from Asia - particularly Taiwan, South Korea, and China. At that time, the EU accounted for less than 10% of global semiconductor production. The primary objective of the European Chips Act was to double this share to 20% by 2030, thereby strengthening Europe's technological sovereignty and mitigating supply chain vulnerabilities.

The Act is structured around three strategic pillars aimed at fostering innovation, attracting investment in manufacturing, and enhancing coordination among EU member states.

I. The "Chips for Europe" Initiative
The first pillar focuses on advancing semiconductor innovation across Europe by accelerating the transition from research to industrial-scale production. It supports the development of cutting-edge production lines, cloud-based design platforms, and knowledge transfer from research labs to fabs. The EU allocated €3.3 billion from its budget to support this initiative, with member states committing additional national funds. Dedicated financial instruments are also being developed to support breakthrough technologies, including quantum chips.

II. Investment in Manufacturing Facilities
The second pillar aims to stimulate both public and private investment in state-of-the-art semiconductor fabs, with a particular focus on small and medium-sized enterprises (SMEs). By offering subsidies and lowering financial entry barriers, the EU hopes to expand the region’s production capacity. However, funding is reserved for "first-of-a-kind" facilities - pioneering and innovative manufacturing plants that do not yet exist in Europe.

III. Supply Chain Monitoring and Coordination
The third pillar is centered on enhancing cooperation between EU member states and the European Commission to improve the transparency and resilience of semiconductor supply chains. This includes monitoring chip supply, forecasting shortages, and implementing rapid-response mechanisms when disruptions occur. One of the first actions under this pillar was the launch of a supply chain disruption reporting system in April 2023.

Poland’s Contribution to the European Chips Act
Polish institutions are actively engaged in three of the five pilot lines launched under the Chips Act framework:

• FAMES (FD-SOI Pilot Line): Warsaw University of Technology, through the CEZAMAT Center for Advanced Materials and Technologies, is part of a European consortium developing FD-SOI technology at 10 nm and 7 nm nodes.

• WBG Pilot Line (Wide Band Gap Semiconductors): The Łukasiewicz Research Network – Institute of Microelectronics and Photonics (Łukasiewicz–IMiF), together with the Institute of High Pressure Physics of the Polish Academy of Sciences (IWC PAN), is contributing to a €50 million project focused on developing advanced wide band gap semiconductor technologies for key sectors like automotive, industry, and defense.

• PIX Europe: This latest pilot line, involving Warsaw University of Technology, focuses on advancing photonic chip manufacturing and strengthening Europe’s position in the global semiconductor landscape.

European Chips Act 2.0 - A Strategic Reboot

In response to the limited success of the first Chips Act, a coalition of EU member states - including the Netherlands, Germany, France, Italy, and Spain - has begun work on a revamped version: Chips Act 2.0. Proposals are expected to be submitted to the European Commission by summer 2025. This new iteration aims to streamline bureaucratic processes, improve strategic alignment, and offer more targeted support - not only for chip manufacturing plants, but also for R&D centers, equipment and materials suppliers, and small and medium-sized enterprises. The overarching goal is to accelerate Europe’s momentum in the global semiconductor race and secure long-term competitiveness.

We are closely following the evolution of these ambitious initiatives and look forward to engaging discussions during the inaugural SemicPoland 2025 Semiconductor Industry Forum.