On 14 October, Marco Ceccarelli of DG CNECT presented the Chips Act 2.0 at an Enterprise Europe Network workshop. His presentation shows which measures the European Commission proposes and what startups, SMEs and knowledge institutions should look out for. On 24 November, you can put your own questions to him.
What did the first Chips Act deliver?
The first European Chips Act has applied since September 2023. According to the European Commission, around 90% of the Chips for Europe Initiative budget was committed in two and a half years. Five pilot lines have been launched, and Chips Competence Centres are active in 28 countries. The European Chips Design Platform supports startups with EUR 220 million from the EU, complemented by the Member States.
A lot is happening on the production side too. 18 projects for new production facilities have been approved. Together they represent more than EUR 52 billion in investment and 46,000 direct and indirect jobs.
Why a Chips Act 2.0?
The evaluation of the first Chips Act also shows gaps. Innovations struggle to scale, there is little capital for fast-growing chip companies and insight into the supply chain is limited. In chip design the gap is large: Europe holds less than 1% of global fabless revenue, and none of the 50 largest fabless companies is based in the EU.
At the same time, the market is changing fast. According to the Commission, AI chips will account for more than 70% of the total chip market by 2030. All 27 Member States therefore called for a follow-up focused on advanced technologies.
What changes for startups and SMEs?
The Commission proposes a range of new and extended measures. These are the most relevant for startups, SMEs and knowledge institutions:
The Chips Design Platform will be extended so that scale-ups and SMEs can use it too.
Pilot lines will move towards industrialisation and expansion.
The Chips Fund will expand through the EIC, with an annual Accelerator challenge.
More research and innovation support will run through the Chips Joint Undertaking, with photonics as a cross-cutting technology.
Grand Challenges and Demand Accelerators should stimulate demand for European chips in areas such as cloud, automotive, telecom and robotics.
Innovation procurement helps public authorities become early adopters of new European chips.
Regions of Excellence will recognise regions that invest in the semiconductor value chain.
Large-scale skills initiatives should address the talent shortage.
From supply to demand
The biggest shift is that Europe wants not only to build production capacity, but also to boost demand for European chips. Tom van der Dussen wrote a blog about this for ChipNL CC in July: The European Chips Act 2.0 calls for focus, collaboration and delivery.
Webinar 24 November: put your question to DG CNECT
On Tuesday 24 November at 12:00 CET, aCCCes, the network of European Chips Competence Centres, hosts a Chips Think Tank with Marco Ceccarelli. He will discuss the Chips Act 2.0 and what comes next for the European semiconductor sector. You can submit questions in advance. Register here.
Role of ChipNL CC
ChipNL Competence Centre (ChipNL CC) is the Dutch Chips Competence Centre under the EU Chips Act and helps startups, SMEs and knowledge institutions with business development and funding. As part of the European network of Chips Competence Centres, ChipNL CC translates European schemes into concrete opportunities for Dutch companies. We help you find your way to the Design Platform, the pilot lines and the right funding instruments.
Want to know what the Chips Act 2.0 could mean for your company? Visit our Business Growth page or get in touch.