EU Approves Semiconductor Act... Aiming to Increase Market Share from 10% to 20% by 2030

Article 62 Public and Private Funding Injection
"Will Reduce Asia's Semiconductor Dependence"

The European Union (EU) finalized the implementation of a law on the 25th (local time) aimed at expanding semiconductor production capacity within the region.

The Council, composed of the 27 EU member states, gave final approval to the Semiconductor Act on the same day, and it is expected to come into effect once published in the official journal.

The Semiconductor Act centers on mobilizing a total of 43 billion euros (approximately 62 trillion won) in public and private funds to expand in-house production capacity based on the EU's strengths in research and development and manufacturing equipment technology.

Once the law is implemented, active subsidy support will be possible across the entire semiconductor supply chain, including advanced semiconductor production facilities, legacy process production sectors, research and development (R&D), and design sectors.

Through this, the EU aims to double its current approximately 10% share of the global semiconductor market to 20% by 2030. At the same time, it plans to reduce its dependence on semiconductor imports from Asia.

The EU Executive Commission, the administrative body, drafted the Semiconductor Act in February last year to prevent a recurrence of the semiconductor supply chain crisis that occurred after the COVID-19 pandemic. All legislative procedures were completed in one year and five months.

Besides the EU, Western countries including the United States and the United Kingdom have recently been rushing to invest in nurturing the semiconductor industry to counter China and others.