ESIA pushes for a reinforced EU Chips Act 2
The European Semiconductor Industry Association (ESIA) is urging the European Commission to significantly strengthen the upcoming revision of the EU Chips Act, calling for a more ambitious, industry-driven framework that can anchor Europe’s semiconductor strategy for the next decade. The appeal follows the close of the Commission’s public consultation on the Act’s review.
These proposals signal where future R&D funding, manufacturing incentives, and policy frameworks may move — directly impacting chipmakers, equipment vendors, research labs, and the wider electronics supply chain across the region. Consequently, the recommendations have raised expectations across the industry.
A long-term strategy and deeper industry involvement
ESIA argues that while the 2023 Chips Act marked a critical first step, Europe now needs a clearer, longer-term plan: a dedicated 10-year semiconductor strategy backed by an EU-level semiconductor budget within the future European Competitiveness Fund. According to the association, R&D planning must better match market requirements across all technology nodes and align with user industries to avoid fragmentation and accelerate innovation.
A central theme of ESIA’s recommendations is stronger, structured involvement of industry in EU decision-making. The association calls for “a regular and institutionalised high-level dialogue, a structural industry involvement that advises the European Semiconductor Board (ESB).”
Talent remains a major bottleneck for Europe’s chip ambitions. ESIA warns of a “severe and structural talent shortage,” urging coordinated EU action to attract and retain STEM professionals and increase semiconductor-focused education capacity across Member States.
Streamlined investment conditions and stronger supply resilience
While the Chips Act has supported several major industrial projects, ESIA says Europe must further streamline investment conditions. Today’s permitting procedures remain “slow and fragmented,” the group notes, calling for simplified and faster approvals with predictable timelines to help companies scale more quickly.
The association also recommends expanding the First-of-a-kind (FOAK) state-aid framework to cover critical supply-chain segments such as materials and equipment. ESIA additionally wants to replace the current claw-back mechanism with a reinvestment requirement — an approach it believes would make Europe more attractive to private investors.
On supply-chain resilience, ESIA stresses that Europe needs early-warning systems and appropriate inventory strategies led by industry. It also calls for extra support for pilot lines under the Chips Joint Undertaking, with faster approval cycles and improved access for SMEs. Future pilot lines, the association says, must integrate industry early and stay tightly linked to market needs to ensure commercial viability.
In terms of technology priorities, ESIA highlights edge AI, robotics, industrial automation, IoT, power-efficient semiconductors, and heterogeneous integration as areas where Europe should reinforce capabilities in the next phase of the Chips Act.
As the Commission prepares its proposals for the Act’s revision, ESIA’s industry-driven roadmap signals that Europe’s semiconductor sector is pushing for faster execution, clearer governance, and a more competitive investment climate — key elements that will shape the continent’s next decade of chip manufacturing.
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