May 7, 2025 /SemiMedia/ — The global semiconductor industry association SEMI has called on the European Union to increase its chip investment budget fourfold to €20 billion, urging the creation of a dedicated EU-level fund to drive long-term competitiveness across the semiconductor supply chain.

In its formal response to the EU’s consultation on the 2028–2034 financial framework, SEMI Europe emphasized that such a move could unlock over €260 billion in combined public and private investments. The EU’s 27 member states are currently gathering input from stakeholders, with final budget plans expected in July.

SEMI warned that Europe's reliance on national-level funding risks deepening regional disparities and slowing progress toward strategic independence in semiconductors. A centralized budget, the group argues, would foster a level playing field and accelerate the continent’s industrial development.

Despite its €43 billion Chips Act launched to boost domestic chip production, the European Commission has only allocated €4.5 billion so far, according to a report by the European Court of Auditors released in late March. About 80% of current public funding stems from national governments rather than Brussels.

SEMI also flagged key technology gaps in areas such as advanced process chips, AI semiconductors, and quantum computing — sectors where Europe is currently lagging behind global competitors.

The EU aims to capture 20% of global chip production by 2030, but auditors now project only 11.7% by that deadline, casting doubt on the bloc’s ambitious goal.