European Commission launches Chips Joint Undertaking under the European Chips Act

The European Commission has officially launched the Chips Joint Undertaking (Chips JU) to strengthen the European semiconductor ecosystem and enhance technological leadership. This initiative, part of the Chips for Europe Initiative, is set to receive nearly EUR 11 billion in funding by 2030 from the EU and participating states. The Chips JU will establish pre-commercial pilot lines, a cloud-based design platform, and support quantum chip technology, fostering innovation and bridging the gap between research and industrial activities.

The European Semiconductor Board, formed to advise on the European Chips Act, also held its inaugural meeting, focusing on supply chain resilience and crisis responses. The first call for funding Chips JU pilot lines, with EUR 1.67 billion from the EU, includes projects on advanced transistor architecture, leading-edge semiconductor nodes, heterogeneous system integration, and wide-bandgap semiconductors. The deadline for pilot line proposals is in early March 2024. The Chips Act, proposed in February 2022 and entering into force in September 2023, aims to boost the European semiconductor sector.

Why does it matter?The European semiconductor sector’s strategy was initially introduced by EU Commission President Ursula von der Leyen in her 2021 State of the Union address. Subsequently, in February 2022, the commission enacted the European Chips Act. After reaching a political agreement between the European Parliament and EU member states in April 2023, the Chips Act came into effect on 21 September 2023. This enactment included the establishment of the Chips JU and the formation of the European Semiconductor Board, marking a comprehensive initiative to bolster the semiconductor industry in Europe.