The EU Chips Act just received its final approval

Governing bodies worldwide have taken steps in recent years to boost local chip manufacturing, such as tax incentives and funding. For instance, the European Union just approved the Chips Act, regulations meant to improve its member states' semiconductor production capacity. First announced in February 2022, the Chips Act aims to use 43 billion ($47.5 billion) in investments to increase the EU's cut of microchip production to 20 percent in 2030 - it currently sits at about 10 percent. The Council of the European Union also hopes it will "attract investment, promote research and innovation and prepare Europe for any future chip supply crisis." The semiconductor industry is projected to be worth $1 trillion by 2030, led by smartphones, servers, data centers, and storage applications.

In approving the Chips Act, the EU might remove some of its reliance on foreign entities, like China, to produce semiconductors. "With the Chips Act, Europe will be a frontrunner in the world semiconductors race," Hector Gomez Hernandez, Spanish Minister for Industry, Trade and Tourism, said about the development. "We can already see it in action: new production plants, new investments, new research projects. And in the long run, this will also contribute to the renaissance of our industry and the reduction of our foreign dependencies."

The EU's final approval of the Chips Act follows President Biden signing the CHIPS and Science Act into law in 2022. It made $52 billion in funding and tax credits available to the United States' semiconductor industry, with $39 billion of it set aside for semiconductor manufacturing initiatives - applications for funding first opened in Spring 2023.

This article originally appeared on Engadget at https://www.engadget.com/the-eu-chips-act-just-received-its-final-approval-114524113.html?src=rss