EU plans reset for Chips Act to boost local chip demand and production - Crypto Briefing

The European Union is resetting its semiconductor strategy with the upcoming Chips Act 2.0, aiming to boost domestic chip demand and production. Originally launched in 2023 with a €43 billion target t... Read original →

The EU’s strategic pivot reveals a structural gap in advanced nodes. Initially banking on TSMC and others to anchor 3nm fabs, Brussels now concedes that geopolitical friction and capital discipline dampen foreign investment. Chips Act 2.0’s demand-led approach—leveraging automotive (Infineon, ST) and AI cloud infrastructure—is a pragmatic retreat. It will boost ASML’s EUV integration with automotive-grade semiconductors but likely stall at 3nm due to materials and yield constraints. While simplified subsidies lower compliance costs for NXP, U.S. export controls and Chinese competition in power chips intensify pressure. Within 18 months, expect ‘technological sovereignty’ mandates to force public-sector chip sourcing from EU vendors, erecting de facto trade barriers and accelerating a bifurcated global standard between U.S.-aligned and EU-centric mature-node ecosystems.