In a decisive step towards the consolidation of Europe’s technological leadership, the European Commission has officially inaugurated the Joint Undertaking on Chips. This initiative, framed within the European Chips Act, aims to strengthen the European semiconductor ecosystem and bridge the gap between research, innovation, and production.
Objective and Financing of the Joint Undertaking on Chips
With a projected budget of nearly 11 billion euros until 2030, funded by the European Union and participating Member States, the Joint Undertaking on Chips will focus on the development of innovative pilot lines and cutting-edge technologies. The Commission announced the first call for projects, endowed with 1.67 billion euros of EU funding, expecting to attract additional funds from Member States and private entities to reach 3.3 billion euros.
Key Activities and Funding Calls
Among the main activities of the Joint Undertaking on Chips are:
Establishment of pre-commercial and innovative pilot lines to test and validate semiconductor technologies.
Development of a cloud-based design platform for design companies across the EU.
Support for the development of advanced technological capabilities for quantum chips.
Creation of a network of competence centers and promotion of capability development.
Funding calls will cover topics such as the development of advanced semiconductor technologies of less than 2 nanometers, integration of heterogeneous systems, and wide bandgap semiconductors, among others. The deadline for proposal submission is early March 2024.
The European Semiconductor Council
Simultaneously, the first meeting of the European Semiconductor Council was held to advise the Commission on the coherent implementation of the European Chips Act and international collaboration on semiconductor matters. This Council will be a key platform for coordination between the Commission, Member States, and stakeholders, addressing issues related to supply chain resilience and potential crisis responses.
Impact and Significance
The Joint Undertaking on Chips is a milestone in the effort to strengthen the European semiconductor industry, crucial for Europe’s economic and technological security. The initiative will facilitate the transfer of knowledge from the lab to the factory, reduce the gap between research, innovation, and industrial activity, and promote the commercialization of innovative technologies by the European industry.
The establishment of the Joint Undertaking on Chips and the European Semiconductor Council are significant steps towards a more innovative and competitive Europe in the global semiconductor technology arena. These initiatives will not only promote research and development in the sector but also support digital transformation and business competitiveness across the continent.
Context
Commission President Ursula von der Leyen first announced a common European strategy for the semiconductor sector in her 2021 State of the Union address. In February 2022, the Commission proposed the European Chips Act. In April 2023, the European Parliament and EU Member States reached a political agreement on the Chips Act. The Chips Act came into effect on September 21, 2023, along with the Regulation on the Joint Undertaking on Chips and the European Semiconductor Council.