Industry groups urge focus on design, materials, and equipment
First Chips Act criticized for slow EU approval process
Nine EU countries form coalition to boost chip industry
Subsidies needed for suppliers to enhance fab ecosystem, MEP says
Adds comments from EU Member of Parliament paragraph 5-6
By Toby Sterling and Nathan Vifflin
AMSTERDAM, March 19 (Reuters) - Computer chip makers and semiconductor supply chain firms called on the European Commission to launch a follow up to the 2023 Chips Act on Wednesday, this time focusing on chip design, materials and equipment, in addition to manufacturing.
The first EU chips act prompted a wave of investment in manufacturing, but failed to attract cutting-edge chipmakers or address the rest of the supply chain. Most funding was provided by member states, yet projects needed EU approval - a model criticized as too slow. Still, European firms say it provided a counterweight to larger state support programs in the U.S. and China.
Following a meeting with top sector firms and European lawmakers in Brussels on Wednesday, industry groups ESIA, representing chipmakers, and SEMI Europe, representing the broader industry, said they would send their plea for a 'Chips Act 2.0' to Commission digital chief Henna Virkkunen.
A new program should "decisively support semiconductor design and manufacturing, R&D, materials and equipment," SEMI said in a statement.
Subsidies for suppliers are needed to strengthen the broader industry, European Parliament Member and event host Oliver Schenk told Reuters.
"In Taiwan, you see companies like BASF BASFn.DE or other chemical companies from Europe, producing together with TSMC 2330.TW, but you won't find them here in Europe", he said.
Among more than a dozen firms represented at the meeting were chipmakers NXP NXPI.O, STMicroelectronics STMPA.PA, Infineon IFXGn.DE and Bosch, equipment makers ASML ASML.AS and ASM ASMI.AS, Zeiss and Air Liquide AIRP.PA.
The Commission has yet to detail its plans for the semiconductor industry, though it has said it intends to launch five packages this year spurring European investment, notably in AI.
Last week a group of nine European countries said they would form their own coalition alongside the Commission to strengthen Europe's chip industry.
(Reporting by Toby Sterling and Nathan Vifflin; Editing by Alexandra Hudson and Elaine Hardcastle)
((toby.sterling@thomsonreuters.com;))
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