European industry is central when it comes to achieving the twin green and digital transition of the EU’s economy and society, and making Europe the first climate-neutral continent by 2050. Microchips are the engines of the digital transition. They are critical technologies, meaning that they are needed across the civil (including security), defence and space industries. The ‘European chips act package‘ adopted by the Commission in February 2022 includes a proposal for a regulation setting up a framework of measures to strengthen Europe’s semiconductor ecosystem (the ‘chips act’).

EPRS - Strengthening the EU's chip sector