A European law providing for investment in the chip sector comes into force in the EU today.

The European Regulation for the Development of the Semiconductor Sector comes into force this Thursday in the European Union (EU) to guarantee security of supply and increase investment in support of 3.3 billion euros in community funds.

Following approval by the European Parliament and Council member states, the semiconductor regulation, designed to boost the EU’s “chip” industry, comes into force this Thursday, establishing “a set of measures aimed at ensuring security of supply, sustainability and the EU’s technological leadership in technologies and applications.” , says the European Commission in a statement.

One of the main directions of the new European law is aimed at “transferring knowledge from laboratories to factories, bridging the gap between research, innovation and industrial activity and promoting the industrial use of innovative technologies by European companies.” €3.3 billion in community funds, to be supplemented by funds from Member States and private foundations.

Investment is another focus of this regulation, as it provides “a framework for EU integrated manufacturing plants and open foundries, which are pioneers in the Union and contribute to security of supply and a sustainable ecosystem for the benefit of the Union,” according to the institution.

Cooperation between the 27 EU countries is also planned to “monitor semiconductor supplies, assess demand, forecast shortages and, if necessary, trigger a crisis phase,” Brussels said.

“Chips” are small devices made from materials that can allow or block the flow of electricity, called semiconductors, and can store large amounts of information or perform mathematical and logical operations.

They are needed for products such as credit cards, cars or mobile phones at a time when technologies such as artificial intelligence and 5G networks are developing.

The EU currently produces less than 10% of the world’s semiconductors, so this legislative initiative aims to double this commitment to 20%.

In February 2022, the European Commission proposed a regulation in response to the semiconductor crisis, which at the time affected equipment and vehicle production following the effects of the Covid-19 pandemic.

The aim is to mobilize over €43 billion of public and private investment through European investment, and to prevent and respond quickly to any future supply chain disruptions, so that the EU achieves its ambition of doubling its current market share to 20% in 2030

Semiconductors are integrated circuits that allow electronic devices, such as cell phones, microwave ovens, or elevators, to process, store, and transmit data.

Chip production remains critical to the automotive industry.

With factory closures and increased demand for electronic equipment during the pandemic, a semiconductor crisis has emerged that has caused long supply delays and high losses for car and computer manufacturers, a situation the EU does not want to return to. have.