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EU Chips Act: provisional agreement paves way for Chips Joint Undertaking

21. Apr 2023

On 18 April 2023, the Council of the EU and the European Parliament reached a provisional political agreement on the regulation to strengthen Europe's semiconductor ecosystem ("Chips Act"). 

The aim of this regulation is to reduce Europe's dependence on semiconductors from abroad and to double the EU's global market share in semiconductors through substantial public and private investment and the creation of favourable framework conditions for innovation and production in Europe. 

The "Chips for Europe" initiative is expected to mobilise €43 billion of public-private investment, of which €3.3 billion will come from the EU budget, mainly for a "Joint Undertaking for Chips" under Horizon Europe, which will build on the existing "Joint Undertaking for Key Digital Technologies".

Before this newly formed European Institutionalised Partnership can start its activities, both the Council and the European Parliament still need to formally adopt the Chips Act and implement the amendment of the Single Basic Act for institutionalised partnerships under Horizon Europe, to allow the establishment of the Chips Joint Undertaking.