EU attracted nearly $100B investment in semiconductor industry: EU Commission chief

European Chips Act brings new opportunities, reduces dependency on East Asia, says Ursula von der Leyen

Brussels: The European Union has attracted over €90 billion ($98 billion) worth of investment in the semiconductor industry since its landmark law was announced, EU Commission chief Ursula von der Leyen said on Friday.

Von der Leyen made these observations while speaking at a joint news conference with Belgian Prime Minister Alexander De Croo during their visit to the headquarters of the Interuniversity Microelectronic Centre, a non-profit research and development organization specializing in nanotechnology, in Leuven, Belgium.

“More than €90 billion industrial investment in Europe has been announced” since the EU executive body proposed the European Chips Act in February 2022, von der Leyen highlighted.

She said though the law will enter into force by autumn, it “is sending a very powerful message and providing concrete opportunities” as companies have announced various new ventures across the EU, including Italy, Ireland and France.

She also cited examples of a €12 billion ($13 billion) investment in semiconductor packaging and test facility in Poland and another €30 billion ($32.6 billion) for “two first-of-a-kind fabs in Magdeburg, Germany.”

Von der Leyen stressed that semiconductors “are essential for our green and digital transition” and “our economy would not function without chips.”

She also asserted that the bloc must reduce its “dependency on the few suppliers from East Asia” as part of its strategy to de-risk supply chains by promoting “design, testing and production here in Europe.”

By channeling public and private funds into the industry, the EU aims to increase its global market share of semiconductors from 10 to 20% by 2030 through the European Chips Act.