Sixteen months after the European Union signed off on its €43 billion Chips Act in the hope it would stimulate semiconductor manufacturing in the bloc, semiconductor trade group the European Semiconductor Industry Association (ESIA) has asked for more public money - and more say over policy decisions impacting local chipmakers.

In a policy document [PDF] outlining the Association's recommendations for industry development between 2024 and 2029, ESIA also called for EU members to elect a "Chips envoy" to help guide semiconductor policy decisions.

Chief among the org's concerns is state aid. The group is already lobbying for a "Chips Act 2.0" to ensure adequate funding to meet the EU's goal of doubling its market share in semiconductor development, manufacturing, and material supply chains from 10 to 20 percent by the end of the decade.

Some of the €43 billion (£36 billion, $48 billion) made available under the EU's first Chips Act has helped to attract several large fab projects to the region - including the €10 billion joint partnership between TSMC, NXP, Infineon and Bosch to manufacture wafers based on mature process nodes in Dresden, Germany. Intel's €30 billion fab project in Magdeburg is another beneficiary.

However, ESIA - which represents the likes of Infineon, STMicroelectronics, NXP, and Bosch - asserts that more moolah may be needed to finish those projects.

"The adoption of the EU Chips Act has been a fundamental building block," it acknowledged. "To not lose momentum, ESIA advocates for an immediate 'Chips Act 2.0' process … Since European semiconductor companies are competing with companies from third-country jurisdictions, Europe's state aid regime must be made future proof."

In other words, that €43 billion was a nice appetizer - now for the main course.

The group wouldn't be the first to suggest that more funding might be necessary to alleviate reliance on the Asia Pacific for semiconductor manufacturing. Across the Atlantic, some US chipmakers have previously suggested a second US CHIPS Act might be necessary. Given Intel's current dire financial situation, we can't imagine CEO Pat Gelsinger would say no to additional European subsidies for its German expansion.

Speaking of Intel, the ESIA statement comes amid growing concerns that Intel's declining revenues could result in delays to its Magdeburg plant. As we reported last week, Intel - which recently announced it was laying off roughly 15 percent of its global workforce - has considered pausing its expansion plans.

Naturally, the trade group also wants to see chip policy directed toward supporting European chipmakers' strengths rather than dictating with whom they can or can't do business.

"ESIA acknowledges the need to project critical assets and the rationale underlying the EU Economic Security Strategy," the group wrote. "Still ESIA believes that a more positive approach to economic security is required which is based on support and incentives, rather than a defensive approach that relies on restrict and protective measures."

It doesn't seem like ESIA is a big fan of export restrictions that prevent shipments of some tech to China - a tactic the US has adopted and asked allies like Japan and South Korea to copy.

Beyond additional funding and more control over EU policy, ESIA also highlights challenges over sustainability and staffing.

The org argues that semiconductors are a net positive for the climate, and lobbied against measures that would restrict the use of certain noxious chemicals required in the chipmaking process.

Finding workers with the skills to work in chip plants is another issue the org considered.

"Several new semiconductor manufacturing sites will be constructed in Europe over the next few years and this will require between 10,000 to 15,000 new skilled workers," the group wrote. "The lack of a skilled workforce must be understood as one of the most severe risks to the sector's ability to stay ahead of competition."

By 2030, ESIA thinks Europe’s chipmaking industries might need 350,000 more employees.

To address this, the group wants the EU to establish an educational strategy to drive workers into Science, Technology, Engineering, and Math (STEM) careers. ®

https://www.theregister.com//2024/09/04/esia_eu_semiconductor_wishlist/