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Two new facilities in the EU-wide semiconductor supply chain have been approved recently. The European financial assistance will contribute to strengthening the continental position and autonomy in the semiconductor value chain, in line with the objectives set out in the European Chips Act and the Commission’s 2024-2029 political guidelines.
Background
Already in February 2022, the Commission adopted the Communication called “Chips Act for Europe”, as a part of a comprehensive Chips Act package, which also included the European Chips Act that entered into force on 21 September 2023. Presently, the EU is working on a new draft for the EU Chips Act 2.0.
In this communication, the Commission recalled that investments in new advanced production facilities in the semiconductor sector are important to safeguard the EU’s security of components’ supply and the supply-chain resilience, while generating significant positive impacts to the wider economy. For example, the Commission recognised several factors relevant for a case-by-case assessment directly under Article 107(3)(c) TFEU.
In November 2024, Germany proposed some innovative investment projects in the European semiconductor value chain: presently, some projects have been pre-selected. Already in May 2026, the twelfth and thirteenth decisions were approved by the Commission based on the previous measures which account for cumulative aid of around €13.9 billion, provided by different EU member states, and supporting the manufacturing of different semiconductor technologies and applications.
A framework for increasing the EU’s resilience in the field of semiconductor technologies becomes a priority to establish and reinforcing the Union’s semiconductor system by reducing dependencies, enhancing digital sovereignty, stimulating investment, strengthening the capabilities, security, adaptability and resilience of the Union’s semiconductor supply chain, and increasing cooperation among the EU member states and international strategic partners.
The EU initiatives in the field of semiconductors
The European Chips Act complements EU initiatives already underway in the area of semiconductors, such as:
= The Alliance on Processors and Semiconductor Technologies
= Programs and actions in research and development such as Joint Undertakings, Horizon Europe and the Digital Europe Program
= The Important Project of common European interest (IPCEI) on microelectronics and communication technologies
= Support via RFF funding.
More in the Digital Europe Program: https://digital-strategy.ec.europa.eu/en/activities/digital-programme
European chips legislation
In September 2023, the European Chips Act entered into force: it reflected a comprehensive set of financial assistance (called measures) to ensure the EU’s security of supply, resilience and technological leadership in semiconductor technologies and applications.
Semiconductors are the essential building blocks of EU wide digital transition: in smartphones and cars, in critical applications and infrastructures for healthcare, energy, defence, communications and industrial automation, to name a few.
Semiconductors are central to the modern digital economy; they are also at the center of strong geostrategic interests and the global technological race.
The European Chips Act is aimed at strengthening the EU-wide manufacturing activities, stimulate the European chips-design system and support the digital scale-up and innovation across the whole value chain.
Through the European Chips Act, the European Union aims to reach its target to double its current global market share to 20% in 2030.
More on the Chips Act in: https://digital-strategy.ec.europa.eu/en/policies/european-chips-act
The Chip’s Regulation in: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2023.229.01.0001.01.ENG
In September 2025, the Semicon Coalition, uniting all 27 EU member states, issues a Declaration setting out their ambition for a new law’s version, so-called Chips Act 2.0, calling for the need to address vulnerabilities, seize technological opportunities, and build a resilient semiconductor ecosystem.
In parallel, the Commission opened a public consultation and call for evidence in September 2025. Stakeholders from across the semiconductor value chain (and beyond) were invited to share their views on how the Chips Act was performing and how it should be adapted to ensure that Europe could compete globally and strengthen technological sovereignty.
More on Semicon, in: https://digital-strategy.ec.europa.eu/en/news/semicon-coalition-calls-reinforced-chips-act
Governance in semiconductors’ market
The expected achievement in the semiconductors’ spheres will be supported by a solid governance’s mechanism: thus, at the EU-wide level, the Chips’ Regulation established a European Semiconductor Board, ESB composed of representatives of the member states and chaired by the Commission; the Board’s aim is to facilitate a smooth, effective and harmonised legal implementation, cooperation and the exchange of information.
Besides, the ESB should provide advice to and assist the Commission on specific questions, including the consistent implementation of the Chip’s Regulation, facilitating cooperation among the member states and exchanging information on issues relating to the new chips’ legislation.
The ESB also advises the Commission on international cooperation related to semiconductors. Besides, the ESB should hold separate meetings for its tasks under the different chapters of the Chips legislation; the different meetings may include different compositions of the high-level representatives and the Commission may establish subgroups.
More in: https://digital-strategy.ec.europa.eu/en/factpages/european-chips-act-monitoring-and-crisis-response
German measure approved
In the process of the German’s initiative approval, the Commission has found that:
= the measures would facilitate the development of economic activities by creating manufacturing capacity for key components of semiconductor manufacturing equipment and source materials for semiconductor production in Europe;
= the facilities were sort-of the “first-of-a-kind” in Europe;
= the financial assistance has had an ‘incentive effect’, i.e. without public support, the companies would downsize, postpone or not carry out these investments in Europe;
= the measures have had a limited impact on competition and trade within the EU. They are necessary and appropriate to ensure the resilience of Europe’s semiconductor supply chain. In addition, the aid is proportionate and limited to the minimum necessary based on a proven funding gap;
= the measures have wider positive effects for the European semiconductor system and contribute to strengthening Europe’s security of supply. The beneficiaries will collaborate with the start-ups, SMEs and research institutions: besides, such companies as Zeiss and Zadient were also applying for their facilities to be recognised as the so-called Integrated Production Facilities under the EU Chips Act Regulation and therefore could commit to comply with all obligations linked to the legal requirements.
Financial support
The European Commission has approved €288 million in German State aid to support the setting up two new facilities in the semiconductor supply chain.
The aid consists of a €222 million funding for Carl Zeiss to build a facility for the manufacturing of semiconductor production equipment in Oberkochen, Baden-Württemberg, and a €66 million for Zadient Materials Europe GmbH to set up a facility for the manufacturing of semiconductor source materials in Bitterfeld, Saxony-Anhalt.
The financial “measures” will contribute to strengthening the EU’s position and autonomy in the semiconductor value chain, in line with the objectives set out in the European Chips Act and the Commission’s 2024-2029 Political Guidelines.
The Commission’s opinion – expressed by Teresa Ribera, Executive Commission Vice-President for Clean, Just and Competitive Transition – notes that “chipmaking requires highly sophisticated production equipment and materials with special characteristics such as high purity. Presently approved German measures can strengthen the EU’s position in the semiconductor value chain and enable innovation to underpin Europe’s technological leadership and resilience in this field.
Source and citation from: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_1095
New ideas
The EU remains dependent on third countries in key areas such as advanced chip manufacturing or semiconductor design. Securing a stable chips supply is necessary to ensure that critical infrastructures and technologies remain secure, resilient and aligned with European values.
The Chips Act 2.0 builds on the progress made by the original Chips Act and will both reinforce current European strengths (including mainstream chips) and build capacity in cutting-edge semiconductor technologies. This will allow the EU to maintain its position as an indispensable player in the value chain, while strengthening its resilience, and reducing strategic dependencies and supply chain vulnerabilities.
Commission’s June-2026 EU package, formally titled the European Technological Sovereignty Package, includes two legislative proposals: the Chips Act 2.0 and the Cloud and AI Development Act, supplemented by an Open-Source Strategy and a Strategic Roadmap for digitalisation and AI in energy. The package marks the bloc’s most ambitious attempt yet to reduce dependence on non-European providers, including plans to bar cloud companies that fail to meet new EU sovereignty criteria from sensitive government contracts, and emergency powers to prioritize chip production during supply crises.
The Chips Act 2.0 complements other new initiatives, including the Cloud and AI Development Act (CADA) and the EU Open-Source Strategy, in contributing to a more competitive, secure and resilient European digital economy.
The investment ambitions for the package’s implementation are staggering: an estimated €120 billion for semiconductors, €200 billion for data centers by 2036, €100 billion for cloud and AI, and €2 billion for open-source software over seven years.
Source and citations from: Proposal for the Chips Act 2.0 -Policy and Legislation. 3 June 2026. In: https://digital-strategy.ec.europa.eu/en/library/proposal-chips-act-20
More on semiconductors, in the Commission’s website at: https://digital-strategy.ec.europa.eu/en/related-content?topic=243