{"id":299558,"date":"2025-11-18T18:05:17","date_gmt":"2025-11-18T18:05:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/299558\/"},"modified":"2025-11-18T18:05:17","modified_gmt":"2025-11-18T18:05:17","slug":"industry-urges-pragmatic-eu-chips-act-2-0-to-close-gap-with-us-and-china","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/299558\/","title":{"rendered":"Industry urges pragmatic EU Chips Act 2.0 to close gap with US and China"},"content":{"rendered":"\n<p class=\"yf-1090901\">By Toby Sterling<\/p>\n<p class=\"yf-1090901\">AMSTERDAM (Reuters) -The European Union must incentivise investments by computer chip equipment, materials and design firms to ensure the bloc&#8217;s \u200bsecurity and not lag further behind U.S. and Asian rivals, industry group \u200cSEMI Europe recommended on Tuesday.<\/p>\n<p class=\"yf-1090901\">The EU Commission had asked SEMI, which represents hundreds of European chip industry firms, for \u200crecommendations as it revises the 2023 Chips Act, which focused on attracting 43 billion euros of investment into chip facilities in Europe.<\/p>\n<\/p>\n<p class=\"yf-1090901\">The U.S., China, South Korea, Taiwan and Japan have similar initiatives as the race for market share and need for supply chain security accelerates \u2060in the AI era.<\/p>\n<p class=\"yf-1090901\">Following pressure from \u200cnational governments led by the Netherlands, the EU Commission is due to complete a review of the law in March, a half year ahead \u200dof schedule, and propose significant revisions in what has been dubbed Chips Act 2.0.<\/p>\n<p class=\"yf-1090901\">&#8220;It is important to build on Europe\u2019s strong foundations with pragmatic reforms,&#8221; SEMI said.<\/p>\n<p class=\"yf-1090901\">Rather than focusing on attracting \u200badvanced manufacturing \u2014 such as a previous failed attempt to bring Intel (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/INTC\" data-ylk=\"slk:INTC;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">INTC<\/a>) to Germany \u200c\u2014 funding must go to projects that will support European supply chains and build on existing strengths such as in equipment manufacturing, where Europe hosts firms such as ASML in the Netherlands.<\/p>\n<p class=\"yf-1090901\">That means letting go of the strict &#8220;first of a kind&#8221; criterion for state aid. Meanwhile, to speed up project approvals, the EU must designate a single point \u2060of contact for firms and governments and set itself a \u200bpublic timeline to approve or deny projects, SEMI said.<\/p>\n<p class=\"yf-1090901\">European \u200bgovernments in a Dutch-led coalition in October called on the EU to adopt a Chips Act 2.0 that prioritised &#8220;the semiconductor sector as a \u200dstrategic industry on par with \u2060aerospace and defence and &#8230; if necessary use all the available instruments to protect it&#8221;.<\/p>\n<p class=\"yf-1090901\">In addition to investment tax breaks and project funding from member states,\u2060 SEMI argues the EU should also have a budget of 20 billion euros ($23 billion) for chip \u200cprojects, which would represent a quadrupling.<\/p>\n<p class=\"yf-1090901\">($1 = 0.8630 euros)<\/p>\n<p class=\"yf-1090901\">(Reporting \u200cby Toby Sterling; Editing by Alison Williams)<\/p>\n","protected":false},"excerpt":{"rendered":"By Toby Sterling AMSTERDAM (Reuters) -The European Union must incentivise investments by computer chip equipment, materials and design&hellip;\n","protected":false},"author":2,"featured_media":299559,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,35195,5335,155974,155973],"class_list":["post-299558","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-eu-commission","tag-european-union","tag-national-governments","tag-semi"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/299558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=299558"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/299558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/299559"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=299558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=299558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=299558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}