Europe hungers for faster chips

A coalition of nine European countries is discussing how to accelerate the continent’s chip independence, the group said on Friday.

France, Germany, Italy, the Netherlands, and Spain are involved in the discussions, which are plotting a second Chips Act, according to Dutch Economy Minister Dirk Beljaarts. The first European Chips Act went into effect in 2023, though Reuters notes it has so far “failed to meet key goals” to stimulate the European chip market. On Wednesday, the European Semiconductor Industry Association and SEMI Europe, both industry trade groups, publicly called for a new Chips Act.

The new initiative could target specific gaps in Europe’s industrial capacity. Europe has a grasp on research and development, and semiconductor equipment (such as the Dutch lithography powerhouse ASML) but needs to invest more in chip packaging and production, Beljaarts said. In September, Intel delayed plans to build a factory in Germany by at least two years. The coalition is planning to present its proposals to the broader European community this summer.