The European Commission is set to unveil a new proposal aimed at boosting demand for European chips, particularly for artificial intelligence technologies, according to a draft seen exclusively by Euronews.
Brussels is preparing a major shift in its industrial policy on semiconductors through a revised Chips Act, due to be published on 3 June.
“While the initial Chips Act has been predominantly supply-driven, the Chips Act 2.0 places greater emphasis on demand-side measures. The two dimensions are mutually reinforcing: cultivating robust local demand supports the strengthening of local semiconductor supply,” an early draft of the proposal reads.
The original Chips Act focused heavily on supporting the construction of semiconductor manufacturing facilities in Europe via public subsidies. That approach suffered a setback after US chipmaker Intel scrapped plans to build two mega-fabs in Germany.
According to the draft, one lesson from the first legislation is that supply-side investment alone is insufficient to create scale without stronger demand. The proposal points to tools such as procurement coordination and consumption incentives to stimulate the market.
