EU Proposes Chips Act 2.0 to Bolster European Semiconductor Supply and Innovation

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The European Commission has proposed Chips Act 2.0, an updated semiconductor policy framework aimed at strengthening Europe's chip manufacturing capacity, research base, and supply resilience. It was announced on June 3, 2026, as part of a broader technological sovereignty package that also includes a proposed Cloud and AI Development Act and an Open Source Strategy. The proposal would replace the existing Chips Act framework and focuses on securing supply of mainstream and advanced chips, including AI chips, building stronger domestic demand, and improving crisis preparedness. As a legislative proposal, it will not immediately change the market, and specific funding amounts, deadlines, and eligibility rules have not yet been set.

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