Europe’s Chips Act 2.0: Europe’s attempt to move up the value chain while deepening alignment with trusted partners - GLOBSEC

Europe's Chips Act 2.0 represents a significant advancement in the EU's semiconductor industry strategy, aiming to elevate Europe's position in the global semiconductor value chain. The act focuses on... Read original →

The EU’s Chips Act 2.0 is less an industrial subsidy and more a geotechnological realignment centered on technological sovereignty. Technically, its emphasis on mature and specialty nodes—like automotive MCUs and power semiconductors—will boost demand for European EDA, advanced packaging, and materials, yet critical lithography remains tethered to ASML and non-EU ecosystems. Compliance burdens will rise sharply due to stringent supply chain audits and data localization mandates. In response, the U.S. may fast-track mutual recognition under CHIPS, while foundries in South Korea and Taiwan, China could be forced to reconfigure capacity under dual U.S.-EU compliance regimes. Within 18 months, expect the EU to operationalize a 'trusted partners' certification framework, effectively fragmenting global semiconductor supply chains into geopolitical blocs and raising entry barriers for non-aligned players.