EU to publish Chips Act proposals on Feb 8th

Asked what the value of the financial incentives envisaged under the proposed Act would be, Breton said it would be ‘commensurate’ with the US Chips Act, i.e $52 billion.

To get the money, companies would have to show they are ‘first-of-a-kind’  in Europe, agree to ensure security of supply and commit  to future investment in leading edge technology.

Breton said the proposals include “tools” to secure supply in times of crisis, which have been “inspired” by the US Defence  Production Act.

This means that in times of crisis chip companies could be forced by rhe government to make particular chips.

The EU is said to be thinking about making it a legal requirement for chip companies who take the money  to provide, on request, information about stocks, delivery schedules and production capacity.

The EU could also decide whether to control exports on companies taking the money and may fine conpanies which provide false information or fail to meet the EU’s supply requirements.

It is thought that money for the EU Chips Act will have to be clawed back from funds which have already been allocated elsewhere by the post-pandemic EU recovery funds.

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