EU Ministers Push New Chips Act 2.0 for Tech Sovereignty – Brussels

Alaa AbuJaser

Brussels, Belgium, 25 September, (Brussels Morning Newspaper) – European Union industry ministers have debated Chips Act 2.0, with member states broadly supporting efforts to strengthen Europe’s semiconductor industry, reduce strategic dependencies and make critical chip supply chains more resilient.

The discussion took place at the Competitiveness Council in Brussels on 24 September. The proposed legislation, presented on 3 June 2026, is designed to build on the EU’s existing semiconductor policy as global competition intensifies over advanced chips, artificial intelligence and other critical technologies.

EU Ministers Discuss Semiconductor Capacity

Ministers focused on Europe’s ability to manufacture semiconductors and secure reliable access to chips used across major industries. The proposed strategy covers advanced and mainstream chips and seeks to strengthen production, research, investment and supply-chain security.

European governments also stressed that reducing critical dependencies should not mean pursuing complete technological self-sufficiency. International cooperation remains important because semiconductor manufacturing involves complex supply chains spanning multiple countries.

The policy has implications for automotive manufacturing, telecommunications, healthcare, industrial equipment, defence, cloud computing and artificial intelligence.

Peter Burke Calls for European Chip Leadership

Ireland’s Minister for Enterprise, Tourism and Employment, Peter Burke, chaired the Brussels meeting and argued that Europe must translate semiconductor investment into greater technological capacity.

“The next chips act must turn ambition into real sovereignty,” Burke said.

He added: “Europe cannot afford to be just a customer. We must be a frontrunner.”

The comments underline the EU’s effort to develop greater semiconductor capability while remaining connected to international markets and trusted technology partners.

Ministers Focus on Semiconductor Resilience

Cyprus’s Minister of Energy, Commerce and Industry, Michael Damianos, also highlighted resilience during the ministerial discussions.

“Technological sovereignty does not mean self-sufficiency. It means resilience,” Damianos said.

His comments reflect a central challenge facing policymakers. Europe wants to reduce vulnerabilities in strategically important supply chains without attempting to manufacture every semiconductor technology domestically.

New Strategy Builds on Existing Chips Policy

The original European Chips Act was developed after global semiconductor shortages exposed weaknesses in international supply chains and disrupted industries including vehicle manufacturing.

European authorities say the initiative has helped mobilise more than €52 billion in public and private investment and supported an estimated 46,000 direct and indirect jobs.

Despite that investment, vulnerabilities remain in parts of Europe’s semiconductor value chain. Chips Act 2.0 is intended to address those gaps while strengthening European capabilities in strategically important and cutting-edge technologies.

Artificial intelligence is adding urgency to the debate because advanced computing systems require increasingly sophisticated chips. Governments are also examining semiconductor security in the context of defence, critical infrastructure and broader economic resilience.

EU Legislative Negotiations Will Continue

The proposal must pass through the EU’s legislative process before becoming law. Both the European Parliament and the Council will have roles in determining the final legislation.

Following the 24 September ministerial debate, negotiations will continue over investment, production capacity, research, skills, international cooperation and security of supply.

No final agreement has yet been reached. The Brussels discussion has instead helped establish member states’ priorities as negotiations over Europe’s future semiconductor framework continue.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Alaa Abujaser is an intern at Brussels Morning. She is a student of Political Science at ULB University.

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