European Parliament Votes in Favour of European Chips Act

Yesterday the European Parliament gave its support to the European Chips Act. 587 members voted in favour, 10 voted against and 38 abstained, according to the press release. The legislation must guarantee that chips are always available in the EU and stimulate production and innovation to this end. The chip shortages during the corona crisis have frightened legislators. In order to avoid such cases in the future, a mechanism is set up to respond quickly to crisis situations.

Stimulate Research and Find New Talent

During the talks between MEPs, it was agreed that EUR 3.3 billion will be used to stimulate research and development. The chip sector needs a lot of new, local talent for Europe’s production and research plans. The skills of those interested will be sharpened through a network of competence centres, which has yet to be set up.

Official Agreement Already Reached

The legislation will have to pass through the Council of the European Union as the final phase. If they agree, EU countries are obliged to implement the law. Again a formality, because the member states also expressed their support in April, when an official agreement was reached.
The European Chips Act has already piqued the interest of chipmakers. Companies such as Intel, Samsung, and TSMC have already announced plans to invest in the European chip industry. Intel has committed to investing $20 billion in the US, while Samsung has announced plans to invest $116 billion in the next decade. TSMC is also planning to invest $12 billion in the European chip industry.
The European Chips Act is a major step forward in the development of the European chip industry. It will ensure that chips are always available in the EU and stimulate research and development. It will also create a network of competence centres to sharpen the skills of those interested in the chip industry. Finally, it will encourage chipmakers to invest in the European chip industry.