September 10, 2026. On June 3, 2026, the European Commission presented its proposal for the European Chips Act 2.0. This marks the transition from a political discussion about the further development of European semiconductor policy to a formal legislative process. But where did this proposal come from? What happens to it now? Who will decide on the final text of the law? And how is Silicon Saxony contributing to this process?
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The Chips Act 2.0 is based on the first European Chips Act, which entered into force on September 21, 2023. With it, the European Union sought to strengthen research and technological development, enable the expansion of production capacity, and better prepare for disruptions in global semiconductor supply chains.
Since then, investments have been made in numerous projects to expand and build new production capacity in the semiconductor sector, five European pilot lines have been established, and a network of centers of excellence has been launched across all EU member states. According to the European Commission, the Chips Act has so far mobilized more than 52 billion euros in public and private investment and created an estimated 46,000 direct and indirect jobs. Among others, three major investment projects for the expansion and construction of semiconductor capacity are located in Saxony: Infineon’s expansion, the new ESMC fab, and GlobalFoundries’ ongoing SPRINT project.
However, significant dependencies remain along the value chain, particularly in state-of-the-art semiconductor manufacturing of the smallest node sizes or memory chips, as well as in chip design and packaging.
Against this backdrop, the political debate over a successor to the current European Chips Act gained momentum early on. In September 2024, the Draghi Report on European Competitiveness called, among other things, for greater coordination of European semiconductor policy and faster funding and approval procedures. In March 2025, 54 members of the European Parliament called for an ambitious “Chips Act 2.0.” That same month, nine EU member states, including Germany, founded the “Semicon Coalition,” which all 27 member states had joined by September 2025.
At the same time, the European Commission began evaluating the existing Chips Act and launched a public consultation in September 2025
As part of this process, an “Implementation Dialogue” took place in March 2026, led by Henna Virkkunen, Executive Vice President of the European Commission for Technological Sovereignty, Security, and Democracy. During this meeting, in which Silicon Saxony also participated, representatives of the European semiconductor value chain discussed their experiences with the first European Chips Act and possible changes for its revision.
On June 3, 2026, the European Commission finally presented its legislative proposal. Legally, this is a proposal for a new regulation intended to replace the Chips Act of 2023. The legislative procedure is numbered 2026/0139(COD).
The European Commission’s proposal marks the start of the European Union’s so-called ordinary legislative procedure, in which the European Parliament and the Council of the European Union negotiate the European Commission’s legislative proposal on an equal footing.
In the European Parliament, the dossier is being handled primarily by the Committee on Industry, Research, and Energy (ITRE). MEP Oliver Schenk (EPP) is the European Parliament’s rapporteur. MEP Matthias Ecke (S&D) and MEP Bart Groothuis (Renew) are the respective lead negotiators for their political groups. The rapporteur’s task is to present a draft report on the Commission’s proposal. In parallel with this and building on it, the political groups will state their positions, amendments will be tabled, and a vote will take place in the committee. On this basis, the European Parliament will then establish its negotiating mandate, which must be adopted in plenary.
At the same time, the member states are discussing the Commission’s proposal in the Council. Since June 2026, this has been taking place in the Council Working Party on “Competitiveness and Growth, Industry.” Following several meetings in June and July 2026, internal Council deliberations are currently being intensively pursued under the current Irish Council Presidency. The goal is to reconcile the differing positions of the 27 member states and develop a negotiating mandate for the Council of Ministers.
The European Committee of the Regions is also contributing an opinion to the process, but its role is purely consultative. The rapporteur is Thomas Schmidt, a member of the Saxon state parliament. A stakeholder consultation on this topic will take place on September 11, 2026. Key topics include funding conditions, research and pilot lines, skilled workers, infrastructure, and the role of European semiconductor regions.
Once the European Parliament and the Council of Ministers have finalized their respective positions, the so-called trilogue negotiations will begin. During these negotiations, the respective negotiators from the European Parliament and the Council—together with the European Commission—will work toward a joint compromise. Only when the European Parliament and the Council of Ministers reach an agreement, formally adopt it, and the compromise is published in the Official Journal of the European Union is the legislative process complete.
Silicon Saxony has been closely monitoring the process from the outset and represents the interests of its members before policymakers.
Silicon Saxony had already published its own recommendations as part of the consultation on the Chips Act 2.0. Silicon Saxony also participated in the “Implementation Dialogue” in March 2026. Managing Director Frank Bösenberg took part in the discussions as a representative of Silicon Europe, the alliance of leading European semiconductor clusters.
“Among Silicon Saxony’s key demands in this process are, among other things, faster, simplified, and more flexible approval procedures; a consistent and close link between research and industrial manufacturing (closing the lab-to-fab gap), strengthening demand within the EU for products manufactured in the EU, greater transparency and industry participation in governance, and strategic international cooperation in areas where Europe will continue to rely on global supply chains in the future.”&
In the coming months, the European Parliament and the Council must adopt their respective positions on the Commission’s proposal. Negotiations on a joint legislative text can then begin.
Key policy issues include, in particular, the financing and design of support instruments, support for strategic projects across a broader semiconductor value chain, faster approval and state aid procedures, resilience and crisis preparedness, as well as the role of European semiconductor regions.
The Parliament, the Council, and the Commission have set the second quarter of 2027 as a political target for reaching an agreement. This is not a legally binding deadline.
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An overview of the key events leading up to the EU Chips Act 2.0:
September 21, 2023: The first European Chips Act enters into force. It already provides for a future review of the regulation.
September 9, 2024: The Draghi Report calls for greater coordination of European semiconductor policy and faster funding and approval procedures.
March 2025: In a joint letter, 54 Members of the European Parliament call for an ambitious Chips Act 2.0 and a long-term European semiconductor strategy.
March 12, 2025: Nine EU member states, including Germany, establish the Semicon Coalition to strengthen the European semiconductor industry.
September 5, 2025: The European Commission launches a public consultation and a call for evidence to evaluate and further develop the Chips Act.
September 29, 2025: All 27 EU member states join the Semicon Coalition and jointly call for a revised, forward-looking Chips Act.
March 26, 2026: Henna Virkkunen leads the Implementation Dialogue on the Chips Act with representatives of the European semiconductor value chain. The input is to be incorporated into the preparation of the Chips Act 2.0.
June 3, 2026: The European Commission presents its legislative proposal for the European Chips Act 2.0. The actual legislative process begins in the European Parliament and the Council of Ministers.
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👉 Chips Act 2.0
👉 Proposal for the Chips Act 2.0
👉 “What’s Chippening” podcast on the topic
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