EU Proposes 'Chips Act 2.0' to Boost Procurement of Local Startup Chips
The European Commission is proposing 'Chips Act 2.0' to encourage governments to purchase chips from EU startups, aiming to reduce reliance on the US and East Asia.
📋 Article Processing Timeline
- 📰 Published: May 29, 2026 at 04:17
- 🔍 Collected: May 31, 2026 at 23:55 (67h 38m after Published)
- 🤖 AI Analyzed: June 2, 2026 at 00:37 (24h 42m after Collected)
The European Commission wants governments to buy chips made by EU startups in a bid to reduce Europe's reliance on US and East Asian products, according to a document seen by Reuters. The proposal, dubbed 'Chips Act 2.0,' complements the original act implemented three years ago, which has so far failed to attract advanced manufacturing or double the EU's global chip market share to 20% by 2030. Henna Virkkunen, the EU's tech chief, will clarify details on June 3. The initiative is driven by tensions with the US and China. While the original act focused on supply-side measures, 'Chips Act 2.0' will focus on the demand side, using public procurement as a strategic tool to support EU-based startups.
FAQ
Impact on Taiwan's semiconductor industry?
Increased EU self-sufficiency could potentially impact exports from Taiwan in the long term.