The Industry and Energy Committee adopted two draft bills: one on the “Chips Act” that aims to bolster technological capacity and innovation in the EU Chips ecosystem and a second one on the Chips Joint Undertaking to increase investments for developing this type of European ecosystem.

In their amendments to the Chips Act, MEPs focussed more on next-generation semiconductor and quantum chips. A network of competence centres would be created to address the skills shortage and attract new talent on research, design and production. The legislation would also support projects aiming to boost the EU’s security of supply by attracting investment and building up production capacity.

Measures to respond to future shortages

A crisis response mechanism would be set up, with the Commission assessing the risks to the EU supply of semiconductors and early warning indicators in member states that could trigger an EU-wide alert. This would allow the Commission to implement emergency measures such as prioritising the supply for products particularly affected, or carry out common purchasing for member states. MEPs stress that the chips supply chain should be mapped out to identify possible bottlenecks.

MEPs also highlight the importance of international cooperation with partners such as the US, Japan, South Korea and Taiwan. The Commission should establish a chips diplomacy initiative to address any future disruption to supply chains.

The legislative report on the Chips Act was…