SEMI Europe issues recommendations for the next European Chips Act
SEMI Europe has released its SEMI Europe Chips Act Report, a wide-ranging assessment of how the European Chips Act is taking shape and where it still falls short. Approved by the SEMI European Advisory Board, the report consolidates industry feedback and outlines policy recommendations ahead of the next phase of legislation.
The findings highlight where new opportunities — and persistent bottlenecks — may appear across design, materials, equipment, and manufacturing in Europe’s evolving semiconductor landscape.
Key gaps and opportunities identified
The report evaluates progress across the Chips Act’s three pillars: semiconductor R&D (Pillar I), first-of-a-kind manufacturing capacity (Pillar II), and supply-chain resilience and monitoring (Pillar III). While acknowledging momentum in R&D programs and fab expansion efforts, SEMI Europe notes uneven geographical and technological coverage, as well as excessive administrative complexity — especially around Pillar II investments.
Among the areas flagged as underserved are chip design, semiconductor materials, and equipment manufacturing — segments where Europe has global strengths but limited targeted support under current policies. The report emphasizes the need to better integrate these strategic domains into future funding and regulatory frameworks.
“The publication of this report marks a key step in advancing Europe’s semiconductor ambitions,” said Laith Altimime, President, SEMI Europe. “Our findings underline the need for a more resilient supply chain and forward-looking Chips Act that supports innovation and front-end manufacturing to further strengthen Europe’s ecosystem with focus on materials and equipment suppliers, design and advanced packaging to ensure long-term resilient technological sovereignty.”
Recommendations for Chips Act 2.0
Looking ahead to upcoming Chips Act 2.0 negotiations, SEMI Europe calls for streamlined administrative procedures, more accessible funding mechanisms for SMEs and start-ups, and stronger coordination between national and EU-level authorities. These measures, according to the report, would help accelerate investment cycles, reduce red tape, and ensure broader participation across the supply chain.
Workforce development and public-private collaboration are highlighted as critical cross-cutting priorities. SEMI Europe warns that talent shortages and fragmented initiatives could jeopardize Europe’s ability to scale new R&D hubs and manufacturing sites. Alignment with the EU’s economic security strategy is also cited as essential for maintaining global competitiveness in an increasingly strategic sector.
SEMI Europe welcomed the efforts of the European Commission and member states to strengthen the region’s semiconductor ecosystem but cautioned that the next phase of policymaking must take a more holistic and coherent approach. A robust Chips Act 2.0, the organization argues, should accelerate innovation while promoting resilience across the full semiconductor value chain — from design to advanced packaging.
The industry association says it will continue working closely with European institutions, national governments, and private-sector stakeholders to help shape a more integrated and competitive semiconductor ecosystem, positioning Europe for long-term technological sovereignty.
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
