The New Industrial Acceleration Law and the Exclusion of Semiconductors
Brussels has unveiled a new legislative initiative known as the Industrial Acceleration Law, aimed at boosting production across the European continent. However, this law notably omits one of the most critical sectors in modern technology: semiconductors. Despite the growing importance of digital technologies, artificial intelligence, and quantum computing, these areas are not included in the list of strategic sectors outlined by the legislation.
The document itself highlights this omission, stating that while the law covers zero-emission technologies, nuclear fuels, and electric propulsion systems, it excludes digital technologies, AI, quantum technologies, and semiconductors. This exclusion comes at a time when the semiconductor industry is experiencing rapid growth, particularly due to advancements in AI.
Europe set an ambitious target in 2023 to manufacture 20% of the world’s chips by 2030. However, according to recent data from Semi, the European industry association, the region currently accounts for only 7.4% of global chip sales. This gap underscores the need for more focused and comprehensive policies to support the sector.
Expert Perspectives on the Legislation
Emilio GarcÃa, a semiconductor expert and co-author of the bookChips and Power, has criticized the current approach. He argues that the laws should be cross-cutting and applicable to all sectors rather than being fragmented. GarcÃa emphasizes that the proposed law may inadvertently lead to overregulation, which contradicts the European Commission’s stated goals.
Companies and industry associations have been calling for mechanisms that would allow faster assistance, protect European-developed technologies, and safeguard against foreign investments. A recent example of such tension involves the conflict between the Netherlands and China over the chip company Nexperia.
Division of Responsibilities and Future Plans
The exclusion of semiconductors from the Industrial Acceleration Law appears to stem from a division of responsibilities within the European Commission. The law is spearheaded by Stéphane Séjourné, Executive Vice President for the Internal Market, while semiconductors fall under the purview of Henna Virkkunen, Vice President and Commissioner for Technological Sovereignty.
Virkkunen’s department is currently working on a Chips 2.0 law, which aims to address inefficiencies in the previous initiative. According to a report by the Alternativas Foundation, one of the issues identified was the existence of double requirements to justify sector aid, which could hinder progress in the industry.
Challenges and Criticisms
The implementation of the original Chip Law has faced criticism from European auditors, who doubt its ability to meet the 2030 targets. National projects have also struggled, with examples like the freezing of Intel’s projects in Germany and the reduced ambitions of Spain’s Chip Perte initiative.
At the national level, Spain has until the end of August to utilize European funds. Industry leaders are urging the government to make a final push to ensure Spain plays a significant role in the next Important Project of Common European Interest (IPCEI) for advanced technologies.
Spanish Industry’s Call for Action
A report obtained by EL MUNDO reveals that the Spanish Association of the Semiconductor Industry (Aesemi) has proposed that the government invest a minimum of 825 million euros to secure a prominent position in three key projects. These include defense-related initiatives, automotive and enabling technologies such as chip design, photonics, and advanced sensing—areas where Spain is emerging as a leading European country.
In addition, Aesemi is calling for new flexibility mechanisms to help small and medium-sized enterprises (SMEs) access these financial aids. This move is seen as crucial for achieving strategic autonomy and strengthening Europe’s position in the global semiconductor market.
