EU proposes Chips Act 2.0 to strengthen semiconductor ecosystem

The European Commission has presented annexes to the proposal for a Regulation (Chips Act 2.0) to strengthen Europe’s semiconductor ecosystem and set out the technical scope and strategic projects for the Chips for Europe Initiative 2.0.

• Main announcement: The Commission proposes a comprehensive Chips for Europe Initiative 2.0 including a cloud-based Design Platform, multiple pilot lines (including sub-2 nm logic, FD-SOI, advanced packaging, wide-bandgap materials, photonic integrated circuits), quantum chip pilot lines, a Chips Fund for startups/scaleups, and several strategic projects (an EU semiconductor plant, AI chips/systems, a memory fab, leading-edge chip design). Key timelines: negotiations with major EDA providers expected to conclude by autumn 2026, and first full-scale facilities expected operational by end 2026.
• Details and financing: The annexes specify concrete funding and implementation elements: EUR 300 million Accelerator budget (fully deployed), EUR 62 million in grants and EUR 238 million in recommended equity under the Accelerator leg, EUR 68 million on the InvestEU leg with EUR 116 million equity investments so far; strategic project estimates include EUR 20-40 billion (public/private) for a semiconductor plant, EUR 3-4 billion for fabless design growth support, EUR 15-30 billion for a memory fab, and EUR 8-12 billion for leading-edge design. Implementation steps include informal calls for expressions of interest followed by calls for proposals.