European Council grants final approval for chip law

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The Approval of “Chip Law”: Strengthening the Semiconductor Ecosystem in Europe

The European Council in Brussels announced the approval of a regulation to strengthen the semiconductor ecosystem in Europe, known as the “Chip Law” and that this is the last step in the decision-making procedures. The chip law adopted by the European Council aims to create the conditions to develop a European industrial base in the field of semiconductors, attract investment, promote research and innovation and prepare Europe for any future chip supply crisis.

Mobilizing Investment for Semiconductors

The program plans to mobilize €43 billion of public and private investment (€3.3 billion from the EU budget), with the aim of doubling the EU’s global market share in semiconductors, from the current 10% to at least 20% by 2030.

Publication and Future Implementation

After being signed by the President of the European Parliament and the President of the Council, the regulation will be published in the Official Journal of the European Union and will enter into force on the third day following its publication.

Creation of the Chip Joint Undertaking

The Council also approved an amendment to the regulation establishing the Joint Undertakings under the EU’s scientific research program to allow for the creation of the Chip Joint Undertaking, which builds on the Joint Undertaking and renames it for existing key digital technologies.

The Importance of Chips in Everyday Life

Chips are small devices made of semiconductors (materials that allow or prevent the flow of electricity) and capable of storing large amounts of information or performing mathematical and logical operations, essential for a wide range of everyday products, from credit cards to cars or smartphones, with the development of artificial intelligence and 5G networks.

A Growing Demand for Chips and Semiconductors

The demand and market opportunities for chips and semiconductors are expected to grow exponentially.

Reducing Vulnerabilities and Dependence

Recalling that Europe is currently heavily dependent on foreign-made chips, which became more evident during the Covid pandemic crisis, and industry and other strategic sectors such as health, defense, and energy have faced disruptions and supply shortages.

Creating Job Opportunities and Strengthening the Industrial Base

The Chip Law also aims to reduce the EU’s vulnerabilities and dependence on foreign actors, while strengthening the EU’s industrial base for chips, increasing future job opportunities and creating quality jobs.

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