SEMI tells EU to quadruple semiconductor spending, says report
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Industry organization SEMI has told the European Union that it should quadruple its spending on the semiconductor sector and allocate a separate budget for it.
The advice comes in an official response to EU consultations on a ‘European Chips Act 2.0’ according to Reuters. The European Union is now conducting a consultation exercise ahead of a budget announcement in July on proposed spending between 2028 and 2034.
Reuters said that SEMI’s advice is to allocate €20 billion (about US$22.5 billion) across the entire semiconductor supply chain to stimulate a total spending of €260 billion by the authorities and by commercial companies. This implies that only part of the budget would be applied to conventional silicon chipmaking.
The European Chips Act came into force in September 2023 but is seen to have failed to achieve its goals of increasing Europe’s global share of chip manufacturing and technology sovereignty. This is partly due to how far European semiconductor companies had fallen behind the leading-edge of chip making and partly due to larger subsidies and support offered elsewhere, such as US and China.
The European Chips Act has no clothes
Under the first iteration of the European Chips Act the EU is responsible for providing €4.5 billion of the €43 billion in estimated public funding up to 2030. The rest is expected to come from national government coffers. The public spending is expected to stimulate an additional spending of €43 billion by companies to amass a total budget of €83 billion.
“Semiconductors are the foundational component underpinning virtually every sector of the modern economy – automotive, aerospace, industrial robotics and medical devices – and yet the EU continues to rely extensively non-European suppliers for the vast majority of its advanced chips and critical supply chain components,” Reuters quotes the letter saying.
Europe lacks chip manufacturing at the leading-edge for high-performance and AI computing and quantum technologies, SEMI added.
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News articles:
The European Chips Act has no clothes
Europe will miss semiconductor targets, says report
ESIA calls for more funds and support from European Chips Act 2.0
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