EU Proposes 'Chips Act 2.0' to Boost Procurement of Local Startup Chips

The European Commission wants governments to buy chips made by EU startups in a bid to reduce Europe's reliance on US and East Asian products, according to a document seen by Reuters. The proposal, dubbed 'Chips Act 2.0,' complements the original act implemented three years ago, which has so far failed to attract advanced manufacturing or double the EU's global chip market share to 20% by 2030. Henna Virkkunen, the EU's tech chief, will clarify details on June 3. The initiative is driven by tensions with the US and China. While the original act focused on supply-side measures, 'Chips Act 2.0' will focus on the demand side, using public procurement as a strategic tool to support EU-based startups.