The European Union is exploring new measures to support its semiconductor industry, according to European Commission digital chief Henna Virkkunen.

This follows discussions about a potential “Chips Act 2.0” after the original €43 billion (US$46 billion) Chips Act, launched in 2023, did not fully meet its goals.

The initial program has helped prevent further decline in Europe’s semiconductor sector amid strong competition from United States and Chinese state support.

However, it has not achieved its primary objectives.

A new initiative aims to fill gaps in advanced chipmaking and packaging, strengthen supply chains, and leverage Europe’s existing strengths in chip equipment manufacturing.