📊Executive Summary

The European Chips Act aims to address the ongoing semiconductor shortage by boosting domestic production within the EU. Approved in July 2023, the legislation seeks to increase the EU's share of global semiconductor production from below 10% to 20%. The Act is a response to the complex and vulnerable semiconductor supply chain, which has been severely impacted by the Covid-19 pandemic and geopolitical tensions, including the war in Ukraine. The EU plans to invest around €11 billion through the Chips Joint Undertaking to enhance research, development, and innovation in semiconductor manufacturing. This initiative is critical for ensuring the EU's technological leadership and security of supply in the semiconductor sector....