New Policy Paper by Joan Villoslada Camps, Research Fellow, EsadeGeo, and Angel Saz-Carranza, Director, EsadeGeo.
 

The European Chips Act (ECA) is a legislative proposal, unveiled on 8 February 2022, which seeks to address the root issues that lay underneath the semiconductor shortage arising from the covid-19 pandemic and bolster Europe's position as a technological frontrunner. Europe currently assumes a pivotal role in chip design; however, most of the value chain remains concentrated in East Asia and North America. The European Commission has identified the current state of chip production as excessively vulnerable to supply disruptions, especially it remains susceptible to potential geopolitical tensions between the United States and the Chinese Communist Party. Consequently, the ECA aims to rectify these vulnerabilities by formulating strategic countermeasures against future semiconductor shortages, while reinforcing domestic chip design and production capacities. These concerted efforts are set to ensure a steadfast supply of chips for Europe and pave the way for the continent's future technological development and market dominance.

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