The ESIA welcomes the progress made since the adoption of the first Chips Act, but stresses that the next phase must accelerate industrial deployment, improve coordination at EU level, commit to structural industry participation and create conditions that attract investment, innovation and talent.
Consequently, ESIA calls for a clear 10-year EU semiconductor strategy, supported by a dedicated EU semiconductor budget under the future European Competitiveness Fund. R&D priorities should be better aligned with market and user industry needs (across all technology nodes) to stimulate innovation. Enhanced coordination with Member States and greater public-private cooperation are essential to realizing the EU's ambitions.
ESIA calls for a regular, institutionalized, high-level dialogue and structural industry participation to advise the European Semiconductor Board (ESB). Europe faces a severe structural talent shortage, and the European semiconductor industry urges concerted action to attract, train, and retain STEM talent, including increased semiconductor-specific educational capabilities.
The EU Chip Act of 2023 has enabled the creation of significant projects that have strengthened Europe’s manufacturing footprint and supply resilience. However, authorization procedures remain slow and fragmented. The ESIA urges the EU to make semiconductor investment conditions more predictable and attractive, for example, by introducing faster and streamlined approval processes with clear timelines. The State Aid for Pioneering Projects (FOAK) framework should be expanded to include critical segments such as equipment and materials. The current recovery mechanism should be revised to make it a reinvestment obligation to increase Europe’s attractiveness to private investors. Regarding security of supply, greater attention should be paid to adequate stock levels in user industries and to industry-defined and activated early warning systems.
The joint project on chips must continue and be further developed. Future pilot projects must involve industry from the earliest stages and maintain a strong link with market needs to ensure commercial success. Approval cycles must be shortened and access for SMEs improved. Europe must strengthen its capabilities in cutting-edge artificial intelligence, robotics and industrial automation, the Internet of Things, low-power semiconductors, and heterogeneous integration.
