Some EU Countries Want European Chips Act to Also Fund Current Chips

Oct 1st, an EU document showed that some EU countries want bloc’s billion-euro chip plan to fund the production of current cutting-edge chips, not just the European Commission’s proposed European first-of-its kind chips.

The European Chips Act, unveiled this year, aims to reinforce the EU’s chip industry, and reduce its reliance on US and Asian supplies, triggered by global shortages and supply chain bottlenecks.

The 45 billion Euro (about 43.7 billion US dollars) plan would only allow national funding for European first-of-its chip production, EU executives said. The new proposal needs to be discussed with EU countries and lawmakers before it can become law.

EU diplomats say some countries however want state aid for making current cutting-edge chips used by carmakers.

The president of the Czech Republic, which currently holds the rotating EU presidency, has come up a compromise on the range of chips that could apply to a broader range of government subsidies.

The document shows that the criteria for the first-of-its production chips could consist of innovations that increase the speed of computing or the level of safety, security, or reliability, as well as energy saving and environmental performance.

EU ambassadors plan to agree on a common position in early December this year, enabling them to launch negotiations with EU lawmakers to finalise the legislation.