The European Chips Act entered into force in September, and key to its aim of securing Europe’s supply of semiconductors is a new Chips joint undertaking (JU), which arrives on the stage with a significant budget and a long to-do list.

The target is for the EU to double its global semiconductor market share to 20% in 2030, with the various initiatives that are part of the Chips Act mobilising €43 billion in public and private investment to achieve this. That includes €3.3 billion from the EU budget, which is expected to be matched by member states.

One specific ambition of the Chips JU is to bridge the gap between research and industry, and make Europe less reliant on China and elsewhere for semiconductors. It is not a completely new body, but rather a rebranding of the Key Digital Technologies partnership, with an increased budget and more responsibilities.

Industry as well as national authorities have already expressed an interest in making significant financial commitments of their own to boost innovation in semiconductors, said Yves Gigase, the acting executive director of the Chips JU, outlining the scope of the programme in an interview with Science|Business.

The Chips JU will have a total budget of nearly €11 billion, of which €4.2 billion will come from the EU budget, up from €1.8 billion previously.

Of the €4.2 billion, €1.3 billion will come from Horizon funding unrelated to the Chips Act; €1.425 billion in Horizon funds are specifically linked to the act; and €1.45 billion will come from the Digital Europe programme.

Chips JU will be officially launched in Brussels on 30 November and 1 December, and the intention is to launch the first calls for projects by the end of the year.

Proposing new projects

The public and private organisations already involved in the joint undertaking are expected to continue to propose new projects, while efforts will be made to ensure the role of SMEs is maintained. The additional focus on quantum technology will open up the Chips JU to other stakeholders.

The partnership will target not just chip manufacturers, but also user industries in transport, healthcare, communication, and manufacturing, to develop chips that suits the needs of these sectors.

It is also stressed the importance of the competence centres, which will facilitate access to pilot lines and the design platform, provide training, and offer support in finding investors. The aim is to have at least one centre per member state and to help SMEs in particular to improve design capabilities and develop skills.