EU Nations urge rethink of Chips Act target amid concerns over feasibility

A group of European Union member states is urging the European Commission to revise its ambitious target set in the EU Chips Act.

Ten countries — including Germany, France, and the Netherlands — argue that the goal of securing 20% of global microchip production by 2030 is not realistic.

According to meeting minutes, national representatives discussed a recent European Court of Auditors (ECA) report, which said the EU is unlikely to meet the target. The report found that current investments may not be enough to significantly improve Europe’s position in the global semiconductor market.

The ECA advised the Commission to review the plan, taking into account global competition, raw material dependency, and high energy costs.

The Commission, however, maintains the 20% target is vital to attract investment and regain lost market share. It also pointed to progress made through new competence centres, which are helping to develop skills and knowledge in the chip sector.

As of 2022, the EU’s share of global chip production was less than 10%, far behind Taiwan and the United States. The Commission’s strategy includes a €43 billion investment to boost this number.

Several countries, including Belgium and Finland, are calling for a stronger focus on next-generation chips.

Denmark warned that funding gaps remain a major issue, while Germany and Ireland plan to present national semiconductor strategies soon.

Tech Commissioner Henna Virkkunen has been tasked with ensuring continued action to strengthen the EU’s chip industry.