Brussels (Brussels Morning Newspaper) – The Dutch government announced on Monday that all European Union member states have joined a Dutch-led chips coalition advocating for changes to the EU’s Chips Act.
“Today all EU Ministers agreed on the fact that Europe’s industrial strategy should adapt to the increasing geopolitical tensions in the world,”
Dutch Economic Affairs Minister Vincent Karremans said in a statement.
What reforms to the EU Chips Act are being proposed?
The ‘Semicon Coalition’ was established in March by the Netherlands, along with eight other member states. On Monday, it submitted the declaration to the European Commission. It includes Austria, Belgium, Finland, France, Germany, Italy, Poland, and Spain.
The coalition sought to establish a common statement outlining goals for the EU semiconductor industry by prioritising increased production capacity, securing key technologies, accelerating authorisations, and ensuring skills and finance across the value chain.
How did previous Chips Act measures fall short of expectations?
The previous EU Chips Act faced several critical failures. According to reports, the Act aimed for Europe to capture 20% of the global semiconductor market by 2030, which was deemed unworkable. The European Commission’s own forecast only projected around 11.7% market share by 2030, a minimal increase from 9.8% in 2022, and hence a failure to meet the ambitions.
Moreover, progress was held back by dispersed funding that was allocated primarily by individual member states instead of centrally by the European Commission, with limited coordination and oversight.
The Commission was responsible for only around 5% of funding, as the rest was funded and initiated by member states, many of whom focused projects primarily in a few wealthier countries like Germany and with greater financial capacity compared to other countries. In addition, member states were not required to routinely report on their projects, which created a “data problem” that negatively impacted the effective oversight of the strategy.
