A leading edge fab for Europe in CHIPS Act 2.0 ... - eeNews Europe

The European Commission has unveiled proposals for the CHIPS Act 2.0, aiming to address shortcomings in the original legislation, such as the lack of impact assessments and clear targets. The updated ... Read original →

The EU’s CHIPS Act 2.0 isn’t about fabs—it’s a demand-driven sovereignty play. Mandating sub-3nm AI chip production will force European EDA, materials, and equipment suppliers to rapidly align with EUV and 3D packaging stacks, creating a vertical loop from imec’s 1nm R&D to chiplet integration. Yet TSMC (Taiwan, China) and Intel already dominate advanced packaging globally; without securing ASML EUV allocation and TSMC IP access by 2026, Europe’s ‘leading-edge’ line risks becoming a political façade. The U.S. could leverage CHIPS Act export controls to restrict American tools for non-allied chip production, inflating compliance costs. Within 18 months, Infineon and automotive chipmakers will face stark choices between technical neutrality and geopolitical alignment—SEMI Europe’s endorsement is less enthusiasm than hedging against policy volatility.