The European Commission (EC) has unveiled the Chips Act 2.0, a proposal that builds on the 2023 Chips Act and introduces new measures to boost the semiconductor industry across the continent.

In a statement, the EC said the Chips Act 2.0 will complement other initiatives it has introduced in the intervening years, helping to build a “more competitive, secure, and resilient European digital economy.”

Despite the progress made by the original Chips Act, the EC noted that the European Union continues to remain dependent on third countries in key areas of the semiconductor manufacturing and design chain. “The Chips Act 2.0 is designed to ensure that Europe captures a larger share of this opportunity, while strengthening areas where we already excel,” it said.

The new act has four main objectives: improving investment conditions; stimulating demand and industrial uptake; reinforcing supply-side measures; and increasing resilience and reducing dependencies.

These aims will be achieved by speeding up permitting, deepening cooperation with partners, and introducing a new excellence label for Europe's semiconductor regions. The Commission added that by adopting an ecosystem approach, it will bring European chipmakers closer to their customers and build on the demand of growth sectors, such as data centers, cloud providers, and AI Gigafactories.

The Chips Act 2.0 also aims to support investment and strategic projects, while addressing vulnerabilities that could put supply at risk.

“We live in a world where geopolitics and technology are inseparable. Those who champion technological innovation will shape the future—and we must ensure that Europe plays a leading role in this,” said Henna Virkkunen, EVP for tech sovereignty, security, and democracy, at the European Commission. “Today's package marks a major shift in how Europe approaches technological sovereignty. It is time for Europe to be in control of its data, of its supply chains, and of its future in a clean and sustainable way. We are strengthening Europe’s digital autonomy and resilience while keeping our economy open to partners around the world.”

The original EU Chips Act was approved in April 2023, with the €43 billion ($49.7bn) act established with the intention of doubling the EU’s global market share in semiconductors from 10 percent to at least 20 percent by 2030.