Chips Act

A compromise is reached after member states vetoed the transfer of €400M from the EU research programme. €325M for the €3.3B initiative to reboot semiconductor manufacturing in the EU will come from Digital Europe

EU is to start negotiations on how to finance its plan to become more self-sufficient in semiconductors – including a €3.3B R&D package. The row over where the money comes from is about to hot up

Diplomatic sources say the objective of a raising a €3.3B budget for ‘Chips for Europe’ remains, but the money must be found elsewhere

MEPs say the EU Chips joint undertaking should put more emphasis on R&D of next generation semiconductors – and they tell the European Commission not to divert Horizon Europe money to new initiatives like the Chips Act

Margrethe Vestager said it would be ‘counterproductive’ to reduce EU funding for cutting edge research

Alongside a big injection of cash for basic and applied research, the Chips and Science bill will put more than $50B into semiconductor manufacturing, mirroring EU action to bring chip production back onshore