SEMI Applauds European Chips Act, Aimed at Boosting Semiconductor R&D and Manufacturing

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SEMI, the global industry association representing more than 2,400 semiconductor and electronics manufacturing companies worldwide, applauded the proposed European Chips Act legislation aimed at strengthening semiconductor research, development, and manufacturing in Europe.

Proposed by European Commission President Ursula von der Leyen in her State of the Union speech on September 15, the European Chips Act is part of the Commission’s policies to achieve the digital transformation of the region’s economy by 2030 under its Digital Decade plan.

“SEMI supports incentives for semiconductor manufacturing and supply chain investments such as those proposed to be included in the European Chips Act,” said Ajit Manocha, SEMI president and CEO. “Transparent implementation of such initiatives allows industry participants the opportunity to efficiently strengthen the resilience of the global semiconductor industry and create a more robust supply chain. The current chip shortage has exacerbated backlogs and lead times for semiconductor manufacturing equipment and materials. Given the vital importance of these elements to expanding semiconductor production capacity, incentives should extend to investments in both new and existing semiconductor manufacturing equipment and materials facilities.”

Citing the current shortages and Europe’s dependency on the global chip ecosystem in a recent blog post, Thierry Breton, the European Commissioner for Internal Market, emphasized the Chips Act must ensure the resilience of the semiconductor supply chain across design, production, packaging and equipment. Breton calls for the legislation to strengthen Europe’s ability to develop mega fabs capable of high-volume production of advanced and energy-efficient semiconductors. Additionally, he recommends the Chips Act include strategies for extending the research ambitions of Europe, tightening coordination of chip production among EU member states, and providing a framework for international cooperation and partnerships.