SEMI hands Brussels a nine-point plan for Chips Act 2.0

The industry group wants EU incentives to cover the whole chip supply chain, not just fabs.

ChipNews Staff
2 Min Read

SEMI has published a position paper with nine policy recommendations for the European Union’s Chips Act 2.0 as the legislation moves through co-decision. The industry association wants the follow-up to the 2023 Chips Act to reach far beyond fab construction.

Its central ask is an expanded First-of-a-Kind framework so incentives can support design, materials, equipment and advanced packaging across the semiconductor value chain.

Red tape is another target. SEMI wants permit decisions that move faster and more predictably, a bigger say for industry in how the program is run, and, on money, a budget it calls ambitious but balanced. The paper also takes aim at Europe’s higher production costs, which are becoming a bigger handicap as the region competes against investment incentives and new capacity in the United States and Asia.

On the demand side, SEMI wants any initiatives aligned with existing industry structures rather than creating parallel systems, plus secure industry-led supply chain monitoring and stronger workforce and skills measures. Laith Altimime, president of SEMI Europe, said the new framework must deliver the speed, investment and policy certainty Europe needs to build on its strengths, with competitiveness depending on the entire ecosystem rather than fabs alone.

SEMI, which represents more than 4,000 companies in electronics design and manufacturing, said several elements of the European Commission’s draft already reflect priorities the association has raised. It will keep pressing member states and EU institutions as negotiations continue.

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