The Council of the European Union has published a compromise text for the "Chips Act 2.0". The new regulation is intended to strengthen the Union's semiconductor ecosystem and to repeal and replace Regulation (EU) 2023/1781.

The proposal responds to structural weaknesses that emerged from the evaluation of the first Chips Act. Its focus is on the shift from technological development to industrial deployment at scale. At the same time, it aims to increase the resilience and economic security of semiconductor supply chains.

Research, innovation and manufacturing capacity are to be strengthened, in particular for critical chips used in strategic sectors such as energy, telecommunications and healthcare.

Key points:

• The European Parliament and the Council of the European Union are proposing a regulation to strengthen the Union's semiconductor ecosystem.
• Regulation (EU) 2023/1781 (the Chips Act) created a comprehensive framework for the European semiconductor ecosystem.
• An evaluation of Regulation (EU) 2023/1781 found that it had mobilised substantial investment and served as a catalyst for a coordinated Union approach to semiconductors.

Source: Council of the EU — Register – Competitiveness (English)