European Union lawmakers have agreed on the $47.2B EU Chips Act, which aims to double the region's global market share of chip output to 20% by 2030.
The plan includes a mix of public and private investments to boost the bloc's supply of semiconductors.
- After negotiations, the European Commission, EU countries, and EU lawmakers reached a deal on the bill's final version on Tuesday.
- The Chips Act would help ensure the bloc's supply of critical semiconductors following COVID lockdowns and other issues that disrupted the supply chain and caused chip shortages.
- It would curb the EU's reliance on Asian and U.S. semiconductor manufacturers and boost Europe's competitiveness in the industry.
- In order to reach its 20% target by 2030, the EU would need to quadruple its chip production.
- The law still requires formal approval from the European Parliament and EU member countries, after which it will be published in the Official Journal and become law.
- Last August, U.S. President Biden signed the CHIPS and Science Act, which will allocate a total of $52.7B in subsidies for domestic semiconductor manufacturing and research to compete with China.
- Biden said the U.S. produces less than 10% of the world's semiconductors, down from more than 30% in the 1990s.
