SEMI Europe Outlines Six Key Recommendations to Strengthen Chips Act 2.0

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SEMI Europe announced the publication of its Position Paper on the Chips Act 2.0, presenting a set of strategic recommendations aimed at reinforcing and future-proofing Europe’s semiconductor policy framework. While the first European Chips Act represented a significant milestone for the region’s semiconductor ecosystem, SEMI Europe now calls on policymakers to address the structural challenges that could constrain its long-term impact.

“Research and product development, chip design, equipment, materials, fabrication and advanced packaging are all interconnected elements of a single ecosystem—one in which success relies on every component functioning in harmony,” said Laith Altimime, President of SEMI Europe.

Building on this perspective, SEMI Europe emphasizes that the effectiveness of the Chips Act 2.0 will depend on its capacity to strengthen capabilities across the entire semiconductor value chain—from design and materials to equipment, as well as front-end and back-end manufacturing. Achieving this will require a revision of the “First-of-a-Kind” definition and an expansion of the Pillar II framework to better reflect the full breadth of the industry.

The position paper also highlights the need to translate Europe’s strong research base into tangible industrial outcomes. To address this structural gap, SEMI Europe advocates for increased industry participation in EU-funded R&D programmes, the creation of dedicated industrialisation initiatives, and the development of tailored instruments to support smaller, innovative players.

Finally, to position the Chips Act 2.0 as a truly strategic instrument, closer alignment with other legislative frameworks will be essential, ensuring its integration into a broader EU technology strategy. Complementary measures—such as targeted tax incentives, reliable access to water and energy resources, and the establishment of a dedicated governing body—will be critical in enhancing Europe’s attractiveness as a destination for semiconductor investment.