Proposal for the Chips Act 2.0

The European Commission proposed the Chips Act 2.0 to reduce the EU's reliance on foreign suppliers for advanced chip manufacturing and semiconductor design. The legislation aims to strengthen European strengths in mainstream chips while building capacity in cutting-edge technologies to secure supply chains for critical infrastructure. The proposal complements the Cloud and AI Development Act and the EU Open Source Strategy in boosting the bloc's digital economy resilience.

The EU remains dependent on third countries in key areas such as advanced chip manufacturing or semiconductor design. Securing a stable chips supply is necessary to ensure that critical infrastructures and technologies remain secure, resilient and aligned with European values. The Chips Act 2.0 builds on the progress made by the original Chips Act https://digital-strategy.ec.europa.eu/en/policies/european-chips-act and will both reinforce current European strengths including mainstream chips and build capacity in cutting-edge semiconductor technologies. This will allow the EU to maintain its position as an indispensable player in the value chain, while strengthening its resilience, and reducing strategic dependencies and supply chain vulnerabilities. The Chips Act 2.0 complements other new initiatives, including the Cloud and AI Development Act CADA https://digital-strategy.ec.europa.eu/en/policies/cloud-and-ai-development-act and the EU Open Source Strategy https://digital-strategy.ec.europa.eu/en/policies/open-source-strategy , in contributing to a more competitive, secure and resilient European digital economy. You can download the full regulation proposal, the annexes, the impact assessment and a summary of this impact assessment below.