eu chips act 2.0: cea-leti prioritizes energy efficiency

eu chips act 2.0: cea-leti prioritizes energy efficiency

2025-07-08 general

Paris, Tuesday, 8 July 2025.
The French research institute CEA-Leti is focusing on energy efficiency as the European Commission drafts the EU Chips Act 2.0. Power consumption is the semiconductor industry’s biggest challenge, says Michaël Tchagaspanian. The EU Chips Act 2.0 aims to boost AI development across sectors. CEA-Leti is partnering with industries to cut semiconductor power use. Tchagaspanian believes the Chips Act 2.0’s main goal is improvement at every level. This includes tools, devices, materials, and manufacturing.

Semiconductor equities and exchange-traded funds (ETFs) performed strongly in the first half of 2025, fueled by enthusiasm for artificial intelligence [6]. One example is the Invesco PHLX Semiconductor ETF (SOXQ), which rose 1.93% in the week ending July 6, 2025 [6]. SOXQ’s year-to-date gain reached 13.39% [6]. These gains highlight the potential for continued upside in the sector, attracting investor attention. Simultaneously, government initiatives such as the EU Chips Act 2.0 and the U.S. CHIPS Act are set to further influence corporate investment strategies [1][3].

Impact of government incentives

Government intervention significantly shapes corporate investment decisions [3]. A study found that firms affected by the U.S. CHIPS Act increased capital expenditures by about 0.5% of total assets per quarter, averaging $60 million per firm [3]. Equity markets reacted positively, indicating investor confidence in policy-driven investment opportunities [3]. The EU Chips Act 2.0 could have a similar effect, incentivizing semiconductor companies to invest in energy-efficient technologies and expand operations within Europe [1].

Trade restrictions and market dynamics

The Trump administration plans to restrict AI chip exports to Malaysia and Thailand, aiming to prevent smuggling to China [2]. These restrictions could further disrupt the global semiconductor supply chain and affect companies like Nvidia and AMD [5][2]. Such measures underscore the ongoing U.S.-China tech rivalry, which is creating a unique environment of government support and innovation demand in the semiconductor industry [6]. Investors should closely monitor these geopolitical developments and their potential impact on specific companies.

Taiwan semiconductor’s growth

Taiwan Semiconductor Manufacturing Company (TSMC) is expected to see substantial sales growth in the coming years [6]. Overall sales are projected to increase from $87.9 billion in 2024 to $114 billion in 2025 [6]. Further growth is expected, with sales reaching $130 billion in 2026 and $160 billion in 2027 [6]. TSMC’s AI revenue is also forecast to rise from $26 billion in 2025 to $33 billion in 2026 and $46 billion in 2027 [6]. These figures suggest strong growth potential for TSMC, driven by increasing demand for AI chips [6].

Fiscal policy and economic growth

Fiscal policy in the U.S. is currently exerting a drag on economic growth [7]. The Hutchins Center Fiscal Impact Measure (FIM) indicated that fiscal policy reduced U.S. GDP growth by 0.5 percentage points in the first quarter of 2025 [7]. This decrease was primarily due to lower federal purchases [7]. The FIM is projected to remain negative through the first quarter of 2027 [7]. Investors should consider these macroeconomic factors when evaluating investment opportunities in the semiconductor industry and other sectors.

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chips act energy efficiency