EC Floats Chips Act to Cut Reliance on Foreign Suppliers

closures in many sectors, and made "more evident the extreme global dependency of the semiconductor value chain on a very limited number of actors in a complex geopolitical context," it said. The legislation will make more than 43 billion euros ($49 billion) in public and private investment available and create mechanisms to prevent, anticipate and respond quickly to future supply chain disruptions. The EU wants to double its market share of chips to 20% in 2030. The Chips for Europe Initiative will pool resources from EU members, the EU, third countries and the private sector to boost research, development and deployment of advanced semiconductor tools. A new framework will ensure supply security and more funding for startups. Under a "coordination mechanism," governments and the EC will monitor the supply of semiconductors to estimate demand and anticipate shortages, and keep track of the value chain to chart weakness and bottlenecks. The EC proposed allowing that coordination between member countries and the EC to start immediately. European Parliament Internal Market Committee Chair Anna Cavazzini, of the Group of the Greens/European Free Alliance and Germany, welcomed the legislation but said it "falls short in addressing the need for circular economy by design, the reuse of chips and its raw materials" to meet the EU Green Deal's goals with diverse and short supply chains. The proposals need parliament and the EU Council approval.