The EU Chip Act is expected to be approved this month

The US has decided to strengthen its own semiconductor manufacturing and rely less on Taiwan. Following in similar footsteps, the EU is now taking some measures to improve its semiconductor industry. The EU will do so via its own Chips Act.

The European Union is to invest $47 billion in reducing its reliance on US and Asian suppliers in order to expand its share of global chip production to 20% within a decade, according to a South China Morning Post story. From the perspective of global chip shortage, the European Commission initially projected funding just for advanced chip pants. However, alter it was further expanded to cover the full value chain including older chips and research and design facilities.

IMEC is a major center for nanoelectronics and digital technologies innovation with headquarters in Belgium. For this reason, this development as a reaction to the IMEC has become more significant. With more than 600 prominent industrial players, lawmakers view IMEC as a compelling justification for increasing R&D spending.

The likelihood of reaching an agreement is high, according to sources familiar with the matter, but discussions to date have pointed to a €400 million shortfall, with the EU executive reportedly securing the majority of the funds. EU countries and lawmakers will meet on April 18th at the European Parliament’s monthly session in Strasbourg to negotiate the funding details for the Act.

In addition to this, the inclusion of the whole value chain will take into account the complaints of small EU countries that were abandoned after Intel and STMicroelectronics declared that they will manufacture chip facilities in Germany and France. Undoubtedly, this recent development is a big step forward that will strengthen the European semiconductor industry. in this way, eventually, the EU will gain a more firm position in the global tech landscape and thus lessen its dependence on Taiwan and the United States.