IPCEI on microelectronics – A major step for a more resilient EU chips supply chain

A major step for a more resilient EU chips supply chain

Today, Germany - on behalf of the participating Member States - formally pre-notified to the Commission the new Important Project of Common European Interest (IPCEI) to support transnational cooperation projects on microelectronics. By joining forces, Member States and industry are kick-starting a process that will lead to important investment decisions to enhance the resilience of Europe’s supply chain in semiconductors.  

With 20 participating Member States (compared to 5 in the previous IPCEI) and more than 90 entities prospective beneficiaries, this IPCEI is a clear sign that Europe as a whole is putting its money where its mouth is. Europe means business! 

Europe means business!

This IPCEI, which mobilises established, large companies as well as start-ups,  will allow investing in major, innovative industrial capacities on all the choke points of the supply chain – critical raw materials, equipment, wafers, research, pre-production and design – to support Europe’s leadership in microchips by closing supply gaps and enabling innovation.

Member States will now have to pre-notify each individual project in the coming weeks. This will allow the Commission to start a more in-depth dialogue with each participating country to assess the merit and capacity of each project to increase Europe’s innovation in the sector as well as its security of supply. This assessment is essential to ensure that the whole IPCEI is greater than the sum of its parts. Given the urgency to act, the Commission will do all it can to ensure a speedy review so that projects can start being implemented on the ground as soon as possible.  

The upcoming EU Chips Act

This is a major step forward, which goes hand in hand with the upcoming EU Chips Act. With the Chips Act, we will increase Europe’s resilience in semiconductors, including through the production of the most advanced cutting-edge chips in order to address both European and global demand. The EU Chips Act will propose measures to anticipate better any potential disruption of the supply chain. It will also create the right investment conditions to ensure security of supply in the entire value chain, including in supporting the creation of below 5nm mega fabrication plants in Europe. And it will further promote Europe’s excellence in research and design in semiconductors.  

We have no time to lose. Our capacity to produce the most advanced semiconductors will contribute to the development of all our industrial ecosystems, of our future industrial leadership but also our geopolitical weight. It's not about producing everything in Europe, but securing the entire supply chain.

And we can be confident. When Europe has the will to get together and march in close ranks, it succeeds.