Chips Act: Council and European Parliament strike provisional deal

The Council and the European Parliament have reached today a provisional political agreement on the regulation to strengthen Europe’s semiconductor ecosystem, better known as the ‘Chips Act’. The deal is expected to create the conditions for the development of an industrial base that can double the EU’s global market share in semiconductors from 10% to at least 20% by 2030.


The Commission proposed three main lines of action, or pillars, to achieve the Chips’ Act objectives

  1. The “Chips for Europe Initiative”, to support large-scale technological capacity building
  2. A framework to ensure security of supply and resilience by attracting investment
  3. A Monitoring and Crisis Response system to anticipate supply shortages and provide responses in case of crisis.

The Chips for Europe Initiative is expected to mobilise €43 billion in public and private investments, with €3,3 billion coming from the EU budget. These actions will be primarily implemented through a Chips Joint Undertaking, a public-private partnership involving the Union, the member states and the private sector.

Main elements of the compromise

On pillar one, the compromise reached today reinforces the competences of the Chips Joint Undertaking which will be responsible for the selection of the centres of excellence, as part of its work programme.

On pillar two, the final compromise widens the scope of the so called ‘First-of-a-kind’ facilities to include those producing equipment used in semiconductor manufacturing. ’First-of-a-kind’ facilities contribute to the security of supply for the internal market and can benefit from fast-tracking of permit granting procedures. In addition, design centres that significantly enhance the Union’s capabilities in innovative chip design may receive a European label of ‘design centre of excellence’ which will be granted by the Commission. Member states may apply support measures for design centres that receive this label according to existing legislation.

The compromise also underlines, the importance of international cooperation and the protection of intellectual property rights as two key elements for the creation of an ecosystem for semiconductors.


The provisional agreement reached today between the Council and the European Parliament needs to be finalised, endorsed, and formally adopted by both institutions.

Once the Chips Act is adopted, the Council will pass an amendment of the Single Basic Act (SBA) for institutionalised partnerships under Horizon Europe, to allow the establishment of the Chips Joint Undertaking, which builds upon and renames the existing Key Digital Technologies Joint Undertaking. The SBA amendment is adopted by the Council following consultation of the Parliament.

Both texts will be published at the same time.

Source: Chips Act: Council and European Parliament strike provisional deal – Consilium

Robin Edgar

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