“We welcome the Commission’s proposals, which we are ready to work on in the Industry, Research and Energy committee. Chips are now everywhere in our industry, and we have seen how the shortage of semiconductors in Asia has affected many sectors in Europe. At the same time, the demand is set to increase considerably over the next decade” said Cristian Busoi (EPP, RO).

“It is not a question, for us, of erecting barriers or of Europeanising at all costs value chains that are global. The European economy will remain open, this was proven during the pandemic. But we want to build a solid European industrial base, because chips are strategic and are at the core of the twin digital and climate transitions that we have decided to undertake. Chips also have to be made more efficient and sustainable. We believe that Europe can become a powerhouse in this transformation” he added.

Next steps

The European Parliament and the Council of Ministers will debate and vote on the Commission’s proposals.

Background

The Commission proposed on Tuesday a set of measures to ensure the EU’s security of supply, resilience and technological leadership in semiconductor technologies and applications. The European Chips Act will aim to bolster Europe’s competitiveness, resilience and help achieve both the digital and green transition.

A European Parliament analysis highlights that The pandemic has revealed long-standing vulnerabilities in global supply chains, and the unprecedented shortage of semiconductors is a prime example. Expected to continue well into 2022, if not beyond, this problem is a case study in what might be in store in the years to come in terms of shortages slowing down production and recovery, and rising costs and prices. These shortages have led, inter alia, to rising costs for industry and higher prices for consumers, and have been slowing down the pace of recovery in Europe.