Chips Act 2.0 Puts Demand at Center of Europe’s Semiconductor Strategy

Find the Latest SoC Solutions
for... Automotive... IoT... Security... Audio... Video

Jun. 11, 2026 –

After using Chips Act 1.0 to rebuild manufacturing capacity, Brussels is trying to connect fabs, design, scale-ups, and industrial customers—but the proposal leaves the biggest funding questions to future EU budget negotiations.

By Pat Brans, EE Times

Released on June 3rd, the European Commission’s Chips Act 2.0 proposal marks a clear shift in emphasis. The first Chips Act focused heavily on manufacturing capacity. The new proposal broadens the policy around demand, chip design, scale-ups, strategic projects, supply-chain visibility, and links to downstream industries.

A senior Commission official told EE Times that Europe’s Chips Act 2.0 comes in a different environment, pointing to two forces behind the new proposal: geopolitics and AI. Europe remains weak in AI chips, with only a few startups designing AI silicon and a continued dependence on advanced semiconductors designed in the U.S. and manufactured in Asia.

Click here to read more ...

 Back