Publication date: February 12, 2026
The EU Chips Act is a major European legislative package launched to boost the EU’s semiconductor industry, aiming to double its global market share to 20% by 2030, enhance supply chain resilience, and reduce reliance on external chipmakers. The EU Chips Act 2.0 is a proposed follow-up to the 2023 Chips Act, driven by a coalition of EU member states (including Germany, France, Netherlands) in late 2025 to shift from crisis management to long-term industrial strategy. It aims to secure supply chains, boost competitiveness, and accelerate investment by simplifying regulations and targeting R&D.
Program Digital Europe is an integral part of the Multiannual Financial Framework 2021-2027, representing the European Commission’s response to the challenges of the digital transformation in the EU. It is a key financial instrument for building digital policy capacity, as recommended by the European Council. The programme builds on and complements existing investment initiatives. The Programme’s main objective is to support the digital transformation of the European economy and society and ensure that it benefits EU citizens and businesses, to support and accelerate the digital transformation of the European economy, industry and society, to deliver benefits to citizens, public administrations, and businesses across Europe, and to contribute to a competitive Europe within Europe. The general objective is further specified in five specific objectives in Regulation (EU) 2021/694 of the European Parliament and of the Council:
– Implementation, coordination, and operation at EU level of an integrated, demand-driven, high-performance computing and data infrastructure aligned with global standards. This infrastructure will be easily accessible to both public and private users, with a particular focus on small and medium-sized enterprises (SMEs), regardless of the Member State in which users are located. It will also be available for scientific research purposes, in accordance with Regulation (EU) 2018/1488.
– Deployment of operational technology emerging from research and innovation, to create an integrated EU high-performance computing (HPC) ecosystem. This ecosystem will encompass various aspects of the scientific and industrial value chain, including hardware, software, applications, services, interactions, and digital skills, while ensuring a high level of security and data protection.
– Implementation and operation of a computing infrastructure that will exceed exascale capabilities, including integration with quantum computing technologies and research infrastructures, supporting the development of the necessary hardware and software at EU level.
These activities will be implemented mainly through the European High Performance Computing Joint Undertaking, established under Council Regulation (EU) 2018/1488.
– Strengthening key AI capabilities and knowledge in the EU, including the development of high-quality data resources, exchange mechanisms, and algorithm libraries. All this should be implemented with a human-centric and inclusive approach, consistent with the Union’s values.
– These capabilities must be accessible to companies, especially small and medium-sized enterprises (SMEs), start-ups, civil society organizations, research institutions and universities, and public administrations. The goal is to maximize their benefits for European society and the economy.
– Strengthening and integrating AI testing and experimentation networks across Member States.
– Developing and promoting commercial applications and production systems that facilitate the integration of technologies across value chains, fostering innovative business models and shortening the time needed to transition from innovation to commercial use. It is also important to promote AI-based solutions in areas crucial to society.
– Data based on AI must respect privacy and security principles from the design stage and fully comply with applicable data protection law.
– Supporting the development and procurement of advanced cybersecurity equipment, tools and data infrastructure, in cooperation with Member States, to achieve a high level of cybersecurity at European level, in compliance with data protection rules and fundamental rights, and ensuring the strategic autonomy of the Union.
– Supporting the accumulation and optimal use of knowledge, capabilities and skills in the field of cybersecurity in Europe, as well as sharing and popularising best practices.
– Ensuring the widespread implementation of modern, effective cybersecurity solutions in the European economy, paying particular attention to public institutions and small and medium-sized enterprises (SMEs).
– Increasing the capacity of Member States and the private sector to help them comply with Directive (EU) 2016/1148 of the European Parliament and of the Council, including by supporting the uptake of best practices in cybersecurity.
– Improving resilience to cyberattacks and increasing risk awareness and knowledge of cybersecurity processes, as well as supporting public and private organizations in achieving basic levels of cybersecurity, for example by introducing full encryption of data transmission and regular software updates.
– Intensifying cooperation between the civilian and defense sectors on dual-use cybersecurity projects, services, competencies, and applications, in line with the Regulation establishing the European Cybersecurity Industrial, Technology, and Research Competence Centre and the National Coordination Network.
– Supporting the creation and implementation of high-quality long-term training and courses, including residential education, aimed at both students and the professionally active population,
– Supporting the creation and implementation of high-quality short-term training and courses for people working, especially in small and medium-sized enterprises and the public sector.
– Supporting high-quality on-the-job training and internship programs for students, including internships, and for the working population, particularly in SMEs and the public sector.
These activities are implemented primarily through direct management.
– Support for the public sector and areas of public interest, such as healthcare, education, justice, customs, transport, mobility, energy, environment, and culture and creative industries. This support involves the effective implementation of modern digital technologies, such as high-performance computing (HPC), artificial intelligence (AI), and cybersecurity, as well as facilitating access to these technologies.
– Implementation, operation and maintenance of a modern trans-European interoperable digital service infrastructure throughout the Union, with an emphasis on complementarity with national and regional actions.
– Supporting the integration and use of trans-European digital service infrastructures and agreed European digital standards in the public sector and public interest areas, with the aim to facilitate cost-effective implementation and interoperability.
– Facilitating the development and modernisation of solutions and structures by public administrations, businesses and citizens, including open source and the reuse of interoperable solutions.
– Ensuring the public sector and EU industry, in particular small and medium-sized enterprises (SMEs), easy access to testing and piloting digital technologies and increasing their use, including across borders.
– Supporting the public sector and EU industry, in particular SMEs and start-ups, in adopting modern digital technologies such as HPC, AI, cybersecurity, and innovative technologies such as distributed ledger technologies (e.g., blockchain).
– Supporting the design, testing, implementation, and maintenance of interoperable digital solutions, including digital government, for public services at EU level. These services will be delivered through reusable, data-driven platforms to foster innovation and create a common framework that unleashes the full potential of public government services for citizens and businesses.
– Ensuring the EU’s continued capacity to lead digital developments, monitoring and analysing rapidly evolving digital trends, and promoting the exchange and dissemination of best practices.
– Fostering cooperation to create a European ecosystem of trusted infrastructure for data exchange and digital services and applications based on distributed ledger technologies (such as blockchain). Promoting interoperability and standardisation, as well as implementing cross-border solutions within the EU, is key, in line with the principle of security and privacy by design and in compliance with consumer and data protection regulations.
– Development and strengthening of European digital innovation hubs and their networks.
Digital innovation centers are essential for the implementation of the program and their tasks include:
– Building awareness and providing or ensuring access to expertise, know-how and services in the field of digital transformation, providing testing and experimental facilities.
In the context of the intended creation of a so-called virtual chip design platform, this regulation provides for measures to develop the European semiconductor ecosystem, which was further strengthened by Regulation (EU) 2023/1781 of 13 September 2023, which amends Regulation 2021/694 and establishes a framework for measures to strengthen the European semiconductor ecosystem, including initiatives related to chip design and manufacturing.
The virtual design platform, supported by the Chips for Europe Initiative, aims to enable the development of large-scale innovative design capabilities for integrated semiconductor technologies available across the European Union. The platform will stimulate broad collaboration between user communities and design companies, start-ups, SMEs, intellectual property and tool providers, designers, and research and technology organizations. It will integrate existing and new design databases with extended EDA libraries and tools. It will promote flexible access models to design tools, especially for prototyping, and common interface standards.
The virtual design platform will be continuously developed and enriched with new technologies and designs, including low-power processors (e.g., based on the RISC-V architecture) and FPGA-based programmable logic devices. Services will be offered in the cloud, increasing the platform’s accessibility and openness by integrating existing and new design centers across EU Member States. The pilot lines will be equipped with specialized design infrastructure, including models simulating the manufacturing process using tools used for circuit and system design. A user-friendly virtualization of these lines will be created, enabling direct access across Europe via the aforementioned design platform.
These pilot lines will accelerate the development of European intellectual property and skills related to innovation in semiconductor manufacturing technology. These will strengthen Europe’s position in the context of new devices and materials for the production of advanced semiconductor technology modules, such as lithography and semiconductor wafer technologies. Building a network of competence centers across the EU will provide expertise for small and medium-sized enterprises and start-ups, enabling them to develop skills and access design infrastructure and pilot lines, thus attracting innovation and talent.
To support the Initiative’s activities, a new legal instrument is needed: the European Chip Infrastructure Consortium (ECIC). This instrument should have legal personality. This means that the ECIC, rather than individual organizations, can apply for funding for the Initiative’s activities. All applications to the program will be open to various forms of collaboration. The ECIC’s primary goal is to foster collaboration between research organizations, industry, and Member States.
To achieve the overall goal and address the challenges in the semiconductor market, the initiative should consist of five key elements:
– A virtual platform accessible throughout the EU should be created to connect design companies with small and medium-sized enterprises, startups, and technology and tool suppliers. The platform should support the development of virtual prototyping technologies.
– To improve security of supply and reduce dependence on production in third countries, pilot lines should be developed to test and validate semiconductor technologies. Pilot lines should operate at higher technology readiness levels, with minimal environmental impact. EU investment in these lines is essential to reduce existing gaps in innovation and competitiveness.
– The initiative should support the development of alternative technologies, such as quantum technologies, by investing in quantum chip design libraries and testing centers.
– To support access to semiconductor technologies and address the skills shortage, competence centers should be established in each Member State. Access to pilot lines and other resources must be open and fair.
Grants under the Digital Europe Programme can cover up to 100% of eligible costs. They are awarded and managed according to specific specifications that address different objectives.
Award criteria are defined in work programmes and calls for proposals. They take into account the following aspects:
– the level of maturity of a specific action in the project development phase;
– the feasibility of the implementation plan;
– financial barriers, such as a shortage of market financing;
– the leverage effect of EU support on public and private investment;
– the expected economic, social, climate, and environmental impact;
– the availability of appropriate services;
– a trans-European dimension;
– a balanced geographical distribution across the Union, including actions to reduce the digital divide between the outermost regions;
– a long-term plan to ensure the sustainability of operations;
– the possibility of reusing and adapting project results;
– compatibility with other EU programmes.
The EU Emissions Trading System (EU ETS) is a mechanism that addresses carbon dioxide emissions from energy-intensive industries and the energy sector. Based on established emission caps and trading, this system is a key tool for the EU in reducing emissions.
The new regulations include:
– including maritime transport in the emissions trading system; – accelerating the reduction of available emission allowances and phasing out free allowances in selected sectors; – introducing a CO₂ offsetting and reduction mechanism for international aviation within the EU ETS; – increasing funding for the modernization and innovation fund; – modifying the market stability reserve.
In 2022, the European Commission presented the REPowerEU plan, which lays the foundation for implementing the legislative proposals contained in the Ready for 55 package . The plan aims to reduce the European Union’s greenhouse gas emissions by at least 55% by 2030, in line with the European Green Deal, to achieve climate neutrality by 2050. The main source of financing for the plan is the Recovery and Resilience Facility , which was established in response to the crisis caused by the COVID-19 pandemic, aiming to temporarily mitigate the socio-economic impact of the situation.
Since the adoption of Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021, which established the Recovery and Resilience Facility, the geopolitical situation has changed significantly. In response to the difficulties in the global energy market caused by Russia’s aggression against Ukraine, the European Commission announced the REPowerEU plan in 2022, aimed at rapidly reducing Europe’s dependence on Russian fossil fuels by 2030 and accelerating the EU’s energy transition.
Reforms under REPowerEU aim to: – Facilitate the development of renewable energy sources (RES).
– Eliminate barriers to the development of RES.
– Support local energy communities.
– Accelerate the integration of renewable energy sources into distribution networks.
– Develop sustainable transport.
– Develop green skills.
– Increase energy efficiency.
The European Chip Act aims to increase Europe’s competitiveness and resilience in semiconductor technology. This act will give Europeans the opportunity to strengthen their technological leadership and achieve their digital and ecological transformation goals. Furthermore, the development of the semiconductor industry could create new jobs in regions that were not previously considered technology hubs. The document aims not only to strengthen the semiconductor ecosystem in the European Union but also to ensure the stability of supply chains, reduce external dependencies, and enable a faster response to changing market needs. This is a key step towards the EU’s technological sovereignty and towards achieving the goal of doubling the global semiconductor market share to 20% by 2030.
The European Semiconductor Council will act as a facilitator in mapping and monitoring the EU semiconductor value chain and preventing crises in this area through appropriate emergency measures.
The European Chips Act focuses on five strategic objectives.
These are:
– strengthening our leadership in research and technology,
– developing and strengthening Europe’s capacity to innovate in the design, production and packaging of advanced chips,
– establishing the right framework to increase production by 2030,
– addressing the skills shortage and attracting new talent,
– increasing knowledge of global semiconductor supply chains.
To achieve these goals, three key actions are planned:
– the Chips for Europe initiative, which aims to support technological capacity building and large-scale innovation,
– the development of a security framework that will support investments in production facilities, ensuring security of supply and the resilience of the EU semiconductor sector,
– The creation of tools and methods for predicting semiconductor shortages and related crises, as well as the ability to respond to them, aims to ensure supply continuity. Several key elements can be identified in this context:
– Supply Chain Alerts (SCAN);
– Crisis Phase and a set of tools that can be used in the event of an emergency.
The European Semiconductor Board (ESB) plays an important role, providing the Commission with advice, support, and recommendations in three key areas: – Monitoring the situation and responding to crises;
– Advising on the initiative for the Public Authorities Board of the Chips Joint Undertaking;
– Consulting the Commission on decisions regarding the granting of IPF and OEF status.
Article 5 of the Act describes in detail the tasks to be implemented.
Operational objective 1 includes: – creating and managing a virtual design platform, accessible throughout the Union, that would integrate existing and new design functions with extensive libraries and tools for automated electronic design (EDA); – strengthening design capabilities by supporting innovative solutions such as open processor architectures, chiplets, programmable chips, and modern types of memories and processors – manufactured in accordance with safety-by-design principles; – expanding the semiconductor ecosystem by integrating vertical market sectors, including health, mobility, energy, telecommunications, security, defense, and space, which will contribute to the implementation of the Union’s green, digital, and innovation programs.
Under Operational Objective 2: – strengthening production capacities for next-generation chips and equipment by integrating research and innovation activities and preparing the development of future generations of technologies, including the latest generations of technologies, FD-SOI (fully depleted silicon on an insulator), new semiconductor materials and heterogeneous systems integration; – supporting large-scale innovation by providing access to new or existing pilot lines, enabling experimentation, testing, process control and validation of new design concepts combining key functions; – providing support to integrated production facilities and open EU factories by granting preferential access to new pilot lines, as well as fair access to these lines for a wide range of users of the EU semiconductor ecosystem.
Under Operational Objective 3: – developing innovative design libraries dedicated to quantum chips; – supporting the development of new and existing pilot lines, clean rooms, and factories for prototyping and manufacturing quantum chips aimed at integrating quantum circuits and control electronics; – expanding facilities for testing and validating advanced quantum chips to be manufactured in pilot lines to bridge the feedback gap between designers, manufacturers, and users of quantum components.
Under Operational Objective 4: – strengthening capabilities and making a wide range of expertise available to stakeholders, including startups and small and medium-sized enterprises (SMEs), which are end-users. Facilitating access to these capabilities and facilities and supporting their effective use. Addressing knowledge and skills shortages, as well as skills mismatches, requires strategies to attract, mobilize, and retain new talent in research, design, and production. Supporting the development of appropriately qualified personnel in STEM (science, technology, engineering, and mathematics) fields at postdoctoral level is crucial. These actions aim to strengthen the semiconductor ecosystem by offering students appropriate training opportunities, such as dual-degree programs and introductory programs for students. It is also worthwhile to focus on upskilling existing workers.
Under Operational Objective 5, these actions include: – increasing the efficiency of EU budget spending to leverage private sector financing;
– providing support to companies facing difficulties in accessing financing and addressing the need to strengthen economic resilience across the Union and Member States;
– accelerating and improving the availability of investments in chip design, manufacturing technologies, and semiconductor integration. Furthermore, attracting financing from both the public and private sectors will be crucial, contributing to the security of supply and resilience of the semiconductor ecosystem across the entire value chain.