EU Chips Act 2.0: Ambition requires funding

DIGITALEUROPE said the EU Chips Act 2.0 proposal is a positive step but its success depends on securing substantial and predictable funding. The industry group said Member States should allocate at least 20 billion euros to an EU semiconductor budget under the next Multiannual Financial Framework from 2028 to 2034. The group said semiconductor manufacturing in Europe is 15 to 30 percent more expensive than in the most competitive Asian locations. It recommended coordinated tax incentives for capital expenditure and operational costs to close the gap. DIGITALEUROPE welcomed the shift toward stimulating demand for European supply but warned that security of supply declarations risk adding administrative burden. The group welcomed the expanded scope for First-of-a-Kind facilities and the proposed 12-month permitting deadline. It said industry must play a more meaningful role in governance decisions on strategic projects and pilot lines. DIGITALEUROPE also urged the Commission to clarify dual sourcing rules for risk-prone sectors, saying the requirements could create significant costs across supply chains.