Chips Act II proposed – much like Chips Act 1 - Electronics Weekly

The European Union has proposed Chips Act II, which would grant the Commission direct investment powers in EU-based fabs, shifting away from the previous model where companies applied for subsidies. T... Read original →

The EU’s Chips Act II reflects reactive techno-sovereignty anxiety rather than strategic foresight. Granting the Commission direct fab investment authority aims to localize 3nm and EUV ecosystems, yet Europe lacks a cohesive stack—from EDA tools to photoresists and advanced packaging—limiting upstream-downstream spillovers. Even TSMC’s Dresden expansion won’t catalyze a domestic supply chain leap. Compliance burdens will surge as firms face dual pressures: subsidy scrutiny and data-localization mandates under CADA, directly hindering AWS, Microsoft, and Google’s AI infrastructure rollouts. TSMC will likely prioritize U.S. (Arizona) and Japan (Kumamoto) over Europe, while SMIC may deepen its mature-node foothold in the region. Over the next 12–24 months, expect a wave of public-private joint ventures—but misallocated capex looms large. Without sub-28nm volume production by 2027, the EU’s 2030 market-share doubling pledge will collapse into political theater.