The Chips for Europe Initiative (Chips Act 2.0) aims to strengthen the resilience and competitiveness of the semiconductor or chips industry of the European Union and to reduce strategic dependencies.
Chairman of the European Union Affairs Committee of the Riigikogu (Parliament of Estonia) Peeter Tali explained that the recent global chip shortage had disrupted supply chains, caused product shortages ranging from cars to medical devices, and in some cases had even forced to close factories. “The broader goal of these reforms is to bring chip manufacturing back to Europe. Since Estonian companies have also shown interest in the designing of chips, we will primarily support local chip design and the patenting of intellectual property with the amendments to the Regulation,” the Chairman said. “The European technology industry must not remain dependent on what Elon Musk or Asian countries are doing.”
According to the positions, the proposal covers, among other things, design and manufacturing capabilities, supply chain security, attracting investment, and the development of research, innovation and skills. Based on the European Commission’s forecast, the global semiconductor market will grow to 1.37 trillion euros by 2030, with nearly 70 per cent of growth coming from components related to artificial intelligence. The purpose of the Chips Act 2.0 is to ensure that Europe gains a larger share of this growth and strengthens its position in the areas where it already has a competitive advantage.
In Estonia, the initiative primarily concerns the companies engaged in chip design, testing, and product development, as well as the electronics industry more broadly, where the main operators are electronics manufacturing service providers, original equipment manufacturers, original design manufacturers, and engineering firms. Estonian companies may get better opportunities to use European design platforms, pilot lines, and centres of excellence, as well as to participate in measures supporting research and development, innovation, and investment. Considering the structure of the Estonian electronics industry, it is important that these measures cover not only semiconductors but also printed circuit boards, electronics assembly, packaging, and systems integration.
The European Union Affairs Committee approved the positions presented by the Government regarding the proposal for a Regulation of the European Parliament and of the Council on a framework of measures for strengthening the Union’s semiconductor ecosystem (Chips Act 2.0), taking into account the opinions of the Economic Affairs Committee.