SEMI Europe: SEMI Europe highlights six key policy recommendations to optimize the Chips Act 2.0 into a strategic tool for Europe

While the first European Chips Act was a significant milestone for the region’s semiconductor ecosystem, SEMI Europe is now calling on policymakers to address the structural challenges that could limit its long-term impact.

“Research and product development, chip design, equipment, materials, manufacturing and advanced packaging are all interconnected elements of a single ecosystem – a system in which success depends on each component working in unison,” said Laith Altimime, President of SEMI Europe.

Building on this perspective, SEMI Europe emphasizes that the effectiveness of the Chips Act 2.0 will depend on its ability to strengthen competencies along the entire semiconductor value chain – from design and materials to equipment, front-end and back-end manufacturing. This will require a revision of the definition of “first-of-a-kind” as well as an extension of the Pillar II framework to better reflect the full breadth of the industry.

The position paper also highlights the need to translate Europe’s strong research base into tangible industrial results. To close this structural gap, SEMI Europe advocates for greater industry participation in EU-funded R&E programmes, the creation of dedicated industrialization initiatives and the development of tailored instruments to support smaller, innovative players.

Finally, to position the Chips Act 2.0 as a truly strategic instrument, closer coordination with other legislative frameworks will be crucial to ensure its integration into a broader EU technology strategy. Complementary measures – such as targeted tax incentives, reliable access to water and energy resources and the establishment of a dedicated steering body – will be crucial to increasing Europe’s attractiveness as an investment location for the semiconductor industry.

SEMI Europe Advocacy

Find out how SEMI Europe Advocacy & Public Policy supports the microelectronics industry in the areas of sustainability, trade, talent and research & development – or get involved by contacting sorlando@semi.org.

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About SEMI

SEMI® is the global industry association connecting over 4,000 companies and 1.5 million professionals worldwide along the semiconductor and electronics design and manufacturing supply chain. Through advocacy, workforce development, sustainability, supply chain management and other programs, we accelerate our members’ collaboration on solutions to the industry’s biggest challenges. Our SEMICON® trade shows and events, technology communities, standards and market analysis drive our members’ business growth and innovation in design, devices, equipment, materials, services and software, enabling smarter, faster and safer electronics. Visit www.semi.org, contact a regional office and connect with SEMI on LinkedIn and X to learn more.

This press release has been translated with AI.

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Further links

👉 To the original announcement

👉 Position paper on the EU Chips Act 2.0