EU member states join Dutch-led coalition push to reform Chips Act

All European Union member states have joined a Dutch-led semiconductor coalition (Semicon) seeking revisions to the bloc’s Chips Act. The Chips Act 2.0 has been designed to strengthen Europe’s position in the global semiconductor market and support innovation. 

The Semicon Coalition was launched in March by the Netherlands and eight other EU states. Today, the group, representing all 27 member states, handed its declaration to the European Union Commission. 

Nvidia and ASML back the EU semiconductor coalition for policy overhaul

Vincent Karremans, Dutch Minister of Economic Affairs, revealed that the initiative highlights the urgency with which Europe’s industrial sector needs to adapt to shifting global conditions. He said that all EU ministers agreed that Europe’s industrial strategy should adapt to increasing geopolitical tensions. 

According to the coalition, the EU’s current semiconductor policy requires a sharper focus beyond the current goal of securing 20% of the global chip market by 2030. The group has called for reforms to enhance critical technology development, fast regulatory approvals, deep talent pools, and strong financing across the semiconductor industry.

The European Union’s original Chips Act encouraged chipmaking to be localized in the region but failed to attract advanced manufacturing. The setback was mainly due to Intel’s failed plans to build a large fabrication plant in Germany, casting doubts on the Act’s effectiveness in meeting its goals. 

SEMI, a semiconductor industry group, confirmed on Monday that it signed the coalition’s declaration alongside more than 50 semiconductor companies in the EU region. Major signatories included firms such as Nvidia, ASML, Intel,  STMicroelectronics, and Infineon.

SEMI reiterated that the EU should establish a dedicated semiconductor budget. The group had also initially urged Brussels to increase public spending on chips, arguing that the existing level of financial support was insufficient to compete with the U.S. and Asia’s efforts in investing in the industry. 

The European Court of Auditors published a report in late March, warning that the EU’s objective to gain access to at least 20% of the global chip market share by 2030 was not achievable under the present policies. The auditors projected that the EU’s market share would reach roughly 11.7% by 2030, compared to 9.8% in 2022. 

Semicon coalition warns EU chip goals at risk without structural reforms

The Semicon coalition’s report aims to address the projected shortcomings by building consensus among EU states and industry partners. The proposal aligns with the concerns that Europe’s semiconductor industry goals may not be achieved if structural bottlenecks, including a shortage of skilled workers, lengthy regulatory procedures, and weaker financial frameworks, are not addressed.

The European Commission is expected to review the proposal as discussions move towards a potential Chips Act 2.0 framework. 

ASML Holdings received an overweight rating from an equal-weight rating by Morgan Stanley just two weeks ago, attributed to the demand for the AI boom and signs of recovery in the broader semiconductor industry.

The investment bank also raised the price target for the Dutch chip maker to €950, up from €600, showing a potential 20% upside. Cryptopolitan covered the story, highlighting that the ASML stock jumped 3.7%, pushing the firm’s valuation to €322 billion ($379 billion), effectively making ASML Europe’s largest semiconductor firm ahead of SAP SE and LVMH.

However, Christophe Fouquet, ASML CEO, warned that trade tensions and global uncertainties may impact growth going into 2026. ASML is the sole producer of advanced lithography machines, which are vital for Apple and Nvidia, and it balances the AI boom with the challenges posed by geopolitical risks.

According to KPMG’s 20th annual Global Semiconductor Outlook, geopolitical risks were expected to weigh heavily in the 2025 semiconductor industry. The Global Semiconductor Alliance conducted a survey, showing that 92% of executives were confident about overall growth in 2025, with most projecting revenue increases of 10% or more. The report cited a strong demand for chips to power AI, cloud computing, data centers, and automotive technologies as the main drivers for the projections.

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