EU Chips Act Overhaul Aims to Boost Investment

The European Union’s revamped plans to stimulate the semiconductor industry — a crucial part of the supply chain for everything from artificial intelligence to cars — would allow the bloc’s executive arm to invest directly in manufacturing and would prioritize development of new technologies, people familiar with the draft said.

The proposal for the Chips Act II, expected in late May, is an attempt to improve on its 2022 predecessor after major chip production plans in Europe were delayed or scrapped, and the bloc’s own auditing body said it was unlikely to meet its targets to double the EU’s share of global chip production.