The European Union (EU) announced on the 21st (local time) that it has enacted the Semiconductor Act to revitalize the semiconductor industry within the region.
The EU Commission stated on its website that the Semiconductor Act aims to ensure semiconductor supply security and technological leadership.
The EU Semiconductor Act targets doubling the EU's share in the global semiconductor market from the current approximately 10% to 20% by 2030. The plan is to transform the EU's semiconductor ecosystem, which has been focused on research and development (R&D), by expanding manufacturing capabilities within the region and thereby reducing dependence on imports from outside the region.
According to the Semiconductor Act, the EU plans to promote the industrialization of advanced technologies through the "European Semiconductor Initiative," which will be funded with a budget of 3.3 billion euros (about 4.7 trillion won). Including private investment funds, a total of 43 billion euros (about 62 trillion won) will be mobilized.
Measures to stabilize the semiconductor supply chain within the region are also included in the Semiconductor Act. The EU will allow a "fast-track" procedure to quickly grant permits to expand "first-of-a-kind manufacturing facilities" within the region. Subsidy support will also be facilitated.
Furthermore, the EU will strengthen semiconductor supply chain monitoring and promote joint purchases among member states in case of supply disruptions.
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