eu chips act sparks semiconductor revolution in europe
Brussels, Thursday, 12 December 2024.
The EU Chips Act is reshaping Europe’s semiconductor landscape by boosting investments and technological access. This strategic shift aims to reduce reliance on external facilities and increase Europe’s market share. European innovators now have access to advanced technologies through new pilot lines, enhancing product development and validation. The act is also fostering sub-nanometer fabrication research, with initiatives like the FAMES pilot line in France advancing cutting-edge semiconductor technologies. This move could significantly alter TSMC’s competitive positioning in Europe. Industry leaders highlight the act’s role in building capacity and ensuring Europe becomes a pivotal player in the global semiconductor market. Events like SEMICON Europa 2024 have spotlighted these developments, underscoring Europe’s commitment to semiconductor innovation. The combination of policy support and technological advancement is setting the stage for Europe to become a major semiconductor hub.
Market impact and strategic alliances
The Industrial Alliance, launched by the European Commission in July 2024, has united over 100 organizations to address critical gaps in the EU semiconductor sector [2]. The initiative complements the EU Chips Act, which came into force in September 2023 [2]. Market analysts are particularly focused on three strategic working groups: Skills, Supply Chains, and PFAS [2]. A significant skills gap looms, with projections indicating 75390 unfilled positions in the semiconductor industry by 2030 [2].
Investment and innovation surge
The EU Chips Joint Undertaking is demonstrating remarkable financial leverage, with its €4 billion budget generating approximately €11 billion in semiconductor investments [6]. Key research facilities are advancing technological boundaries, with imec leading innovation in stacked chip designs [1]. The FAMES pilot line in France is pushing development of FD-SOI at 10nm and 7nm nodes, alongside non-volatile memory technologies [1].
Industry collaboration and manufacturing expansion
Major developments include the formation of the European Semiconductor Manufacturing Company (ESMC) in Dresden, focusing on automotive and industrial chip production [1]. Industry leaders emphasize the importance of global interdependence, with Chips JU Executive Director Jari Kinaret noting that while Europe will maintain some external dependencies, the goal is to ensure mutual reliance [1]. The establishment of five pilot lines for advanced semiconductor technology nodes marks a significant step toward achieving manufacturing autonomy [1].