The EPP Group has secured important improvements to the EU’s Chips Act which will help secure a bigger share of the global semiconductor market, help prevent a chips supply crisis in Europe, and increase support for research and innovation in this sector.

Negotiators of the European Parliament and Member States today reached a provisional agreement on the EU Chips Act, designed to strengthen Europe’s semiconductor sector.

“The Chips Act cannot be a one-trick pony to provide short-term state aid to a chosen few. Through the changes we made to the proposal, we can be more optimistic of securing both future chips supplies, and supporting a more innovative and growing chips sector right across Europe”, said Eva Maydell MEP, the EPP Group’s negotiator on the Chips Act.

“We have prioritised the prevention of supply chain crises rather than taking late and heavy-handed interventionist measures. Enhanced measures on international cooperation and deepened consultation with industry will also help prevent a crisis”, Maydell explained.

“Although we have made significant improvements, the one area that continues to disappoint is the budget that has been made available, especially for research and development. This is a symptom of a much larger challenge for the EU budget that must be addressed head-on if the EU is to walk the talk on making our continent a hub of tech innovation. The EPP Group has pushed strongly for a commitment from the European Commission and EU governments to increase research and development funding to the chips sector, and we will continue to pursue this in future budget negotiations”, Maydell emphasised.

“If Europe wants to remain globally relevant in the digital era, we need to be bold with concrete and ambitious funding. I’m satisfied that we managed to reach an agreement on the overall budget of €3.3 billion for the Chips Act, which should provide our stakeholders with the appropriate tools to push Europe in the right direction. More will certainly be needed to ensure Europe’s economic and technological competitiveness in the years ahead”, said Karlo Ressler MEP, who negotiated the position of Parliament’s Budget Committee on the Chips Act.