Semiconductors have become the backbone of modern economies—powering everything from electric vehicles and smartphones to renewable energy systems and defence technologies. As global competition intensifies, Europe faces a decisive moment. The original EU Chips Act was designed to strengthen the continent’s semiconductor sovereignty, but industry leaders now argue that the framework needs a fundamental rethink. A comprehensive EU Chips Act reform is essential if Europe wants to compete on the global stage.
Why Europe Needs an EU Chips Act Reform Now
The EU Chips Act reform conversation arises from a simple reality: the semiconductor world moves faster than legislation. While Europe has ambitious goals—such as achieving a 20% global market share by 2030—current policies struggle to keep pace with innovation cycles and geopolitical shifts.
Several issues underpin the call for reform:
- Rigid funding mechanisms: Complex criteria and inflexible spending rules make it difficult for smaller firms and research projects to access funds.
- Administrative and regulatory delays: Building fabrication plants in Europe still involves years of permitting and environmental approvals, stalling progress.
- Uneven investment distribution: Political considerations often overshadow technical merit when allocating funds, leading to inefficiency.
- Severe talent shortages: Without a strong engineering and technical workforce, Europe cannot meet its semiconductor ambitions.
- Unclear strategic focus: The Chips Act set bold targets, but not a coherent plan to achieve them.
These gaps threaten to leave Europe dependent on external supply chains at a time when semiconductor control equals geopolitical leverage.
How the Semicon Coalition Is Driving the EU Chips Act Reform Debate
In late 2025, the Semicon Coalition—a consortium of industry leaders and research bodies—issued a declaration urging immediate EU Chips Act reform. Their call to action rests on three key principles:
- Prosperity: Building a vibrant semiconductor ecosystem that can generate innovation and jobs.
- Indispensability: Developing core chip technologies within Europe to reduce foreign dependency.
- Resilience: Strengthening supply chains to withstand global disruptions.
To support these principles, the coalition proposed five reform priorities:
- Ecosystem collaboration: Encourage partnerships among large manufacturers, SMEs, and research institutes while removing barriers to infrastructure development.
- Coordinated funding streams: Align European, national, and private investments to create a unified financing framework.
- Workforce development: Invest in STEM education, training, and talent mobility to address chronic skill shortages.
- Sustainability integration: Ensure semiconductor growth aligns with Europe’s green transition through efficient energy use and circular manufacturing.
- Strategic partnerships: Cooperate with trusted international partners while maintaining technological autonomy.
This collective vision frames the EU Chips Act reform not merely as an economic adjustment, but as a long-term industrial strategy for Europe’s future.
What an Effective EU Chips Act Reform Should Deliver
The Semicon Coalition’s recommendations highlight what a successful reform must achieve in practice:
- Accelerated permitting and approval: Streamline processes so that new fabs can move from concept to construction within competitive timelines.
- Workforce pipelines: Establish European-wide programs to train engineers, technicians, and operators for semiconductor manufacturing and design.
- Infrastructure readiness: Guarantee affordable access to clean energy, water, and land to support large-scale production.
- Performance-based incentives: Reward measurable innovation and productivity rather than compliance paperwork.
- Balanced sustainability: Set realistic green goals that enhance rather than hinder competitiveness.
Without these enablers, Europe risks losing momentum to faster-moving regions in Asia and North America.
The Strategic Value of the EU Chips Act Reform
Beyond manufacturing and R&D, a meaningful EU Chips Act reform carries strategic importance. The semiconductor supply chain is no longer just about economics—it’s about sovereignty. Control over chip design and production defines a nation’s ability to innovate in defence, digital infrastructure, and clean technology.
By modernising the Act, Europe can:
- Strengthen its autonomy in key technologies.
- Secure long-term access to advanced chips for emerging industries.
- Position itself as a credible alternative to Asia and the United States in global semiconductor leadership.
This reform isn’t just about meeting production quotas; it’s about shaping Europe’s digital and industrial destiny.
Making the EU Chips Act Reform Count
Europe’s original Chips Act was an important first step. It signalled political will and injected funding into a critical sector. But the pace of technological change and geopolitical tension has outstripped its early ambitions.
An agile, forward-looking EU Chips Act reform must therefore:
- Cut red tape and empower industry participation.
- Align national and EU-level funding into a cohesive system.
- Make education and training a central policy pillar.
- Balance innovation incentives with sustainable practices.
- Foster global cooperation without compromising European independence.
If these principles guide the reform, the EU can transform itself from a semiconductor consumer into a global innovator.
The stakes could not be higher. Chips underpin every digital advance of the 21st century. A decisive EU Chips Act reform offers Europe the chance not only to compete—but to lead.
To discuss semiconductor manufacturing, fab construction and key issues facing the industry, connect with solution providers and network with delegates, attend the 2nd Constructing Semiconductor FAB Summit Europe: Advances In Planning, Design And Engineering, taking place Oct 21-22, 2025 in Munich, Germany.
For more information, visit our website or email us at info@innovatrix.eu for the event agenda. Visit our LinkedIn to stay up to date on our latest speaker announcements and event news.
