The targets set by the ‘Chips Act’ (see EUROPE 12886/1) for increasing semiconductor production capacity in Europe are not achievable, according to a report published on Monday 28 April by the European Court of Auditors. The European Commission forecasts an 11.7% share of the world market by 2030, a far cry from the ‘Chips Act’ target of 20%. In response to the report, the European Commission pointed out that it had already committed 85% of the budget earmarked for the ‘Chips for Europe’ initiative in a year and a half. This concerns the €3.3 billion of European funds promised in the ‘Chips Act’. The European Court of Auditors points out that the EU’s strategy for increasing semiconductor production was drawn up in a hurry, resulting in a lack of clarity and the possibility of monitoring objectives.
For example, the majority of the €43 billion of public money to be invested in the semiconductor sector is being invested by the Member States. It is therefore virtually impossible for the European Commission to monitor public investment effectively. This is in addition to the fact that funding is fragmented across the EU.
“There is a recurring point we find with EU funding – the financial muscle is split between different actors and funds, creating a risk that we are diluting its impact, doubling up efforts or confusing those that most need the funding”, insisted Annemie Turtelboom, member of the Court of Auditors.
On a more positive note, the Court of Auditors notes that the European Commission’s co-financing is well aligned with the objectives of the ‘Chips Act’. More generally, this initiative has given a boost to the electronic microcircuit industry.
In order to remedy the weaknesses of the ‘Chips Act’ in its current form, the auditors recommend that the Commission carry out reality checks on the numerical targets and take corrective action, if necessary, to meet the targets.
The European Commission should also start preparing its next strategy and proposing new actions and funding. It would also be an opportunity to propose a more coordinated approach at European level.
To see the report, go to https://aeur.eu/f/gkt (Original version in French by Léa Marchal)