Leading semiconductor firms are calling on the European Commission to introduce a follow-up to the 2023 EU Chips Act, arguing that a new policy must extend beyond manufacturing to include chip design, materials, and equipment.

Industry groups say the original programme, while encouraging investment, has failed to attract advanced chipmakers or build a competitive supply chain. Approval processes have also been criticised for being too slow, delaying key projects.

Following discussions in Brussels with European lawmakers, representatives from industry groups ESIA and SEMI Europe announced plans to formally request a 'Chips Act 2.0' from the Commission.

They argue that the EU must take decisive action to strengthen the entire semiconductor industry, including research and development as well as supplier subsidies.

European Parliament Member Oliver Schenk highlighted how other regions, such as Taiwan, have successfully integrated suppliers into their chip manufacturing ecosystem, whereas Europe still lacks such cohesion.

The meeting included major semiconductor companies such as NXP, Infineon, Bosch, and STMicroelectronics, alongside equipment makers ASML, ASM, and Zeiss.

Meanwhile, a coalition of nine EU countries has pledged to work with the Commission to strengthen Europe's semiconductor capabilities.

The Commission has yet to outline specific plans, but it has previously stated its intention to launch investment initiatives this year, particularly in artificial intelligence and technology.