European Lawmakers Urge Quick Action on Chips Act 2.0 to Boost AI and Semiconductor Investment

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European lawmakers have called on the European Commission to expedite the development of a new support program for the region’s semiconductor industry, particularly focusing on investment in AI chips and addressing technological gaps. A letter, authored by representatives from three major factions in the European Parliament and signed by 54 lawmakers, emphasized the urgency of bolstering Europe’s semiconductor sector.

The letter highlighted recent geopolitical developments that have underscored the need for Europe to secure continued access to advanced technologies. Lawmakers expressed concern that the progress under the original 2023 Chips Act has been too slow, urging the European Commission to act more swiftly.

The lawmakers’ plea follows a similar call from leading European chip industry firms, which have also voiced concerns over the pace of progress. While the European Commission has signaled plans to launch five new investment packages this year to support European industries, including AI, the letter criticized the absence of semiconductor-focused measures in these packages. Semiconductors, the lawmakers stressed, are central to the EU’s industrial ambitions, and the current lack of targeted support for the sector could hinder Europe’s technological and economic future.

The initial EU Chips Act prompted a wave of investment but fell short of attracting advanced chipmakers, with Intel notably halting plans for a large new factory in Germany. The lawmakers urged the Commission to address these gaps and act quickly, especially given the current geopolitical realities surrounding competition between the United States and China.

The letter also emphasized the need for Europe to protect its key players from the implications of extraterritorial laws and the escalating global competition in the semiconductor industry.

Interim SEC Chief Casts Sole Vote Against Suing Musk Over Late Twitter Disclosure

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In January, just before Republicans took control of the U.S. Securities and Exchange Commission (SEC), the agency held a closed-door vote on whether to sue Elon Musk for securities law violations related to his late disclosure of purchasing shares in Twitter (now X). According to sources familiar with the vote, four of the five commissioners, including Republican Hester Peirce, voted in favor of suing Musk, while the acting SEC chief, Republican Mark Uyeda, cast the lone dissenting vote.

This vote occurred just days before the SEC filed a lawsuit against Musk on January 14, alleging that he had violated disclosure rules by failing to report his purchase of more than 5% of Twitter’s shares within the required 10-day window. Musk’s late disclosure, which came 21 days after the purchase, allegedly allowed him to acquire more shares at a lower price, saving $150 million on his eventual acquisition of the company.

Uyeda reportedly expressed concerns over the penalty Musk faced and pressed SEC enforcement staff to confirm that politics were not influencing the case, asking them to sign pledges to that effect, which the staff refused. Despite Uyeda’s concerns, Peirce joined the three Democratic commissioners in voting to proceed with the lawsuit.

The SEC’s investigation into Musk, which began in 2022, focused not only on the timing of his disclosure but also whether he had acted with any intent to manipulate the stock price. Musk has maintained that the delay was due to a misunderstanding of the SEC’s rules. The SEC ultimately did not pursue charges alleging intent.

The delay in bringing the case has raised questions among legal experts, who have questioned why the SEC waited so long to act, particularly given the politically charged nature of the case. Musk has had a longstanding feud with the SEC, dating back to 2018 when the agency sued him for misleading investors in a tweet about taking Tesla private.

Musk has until April 4 to respond to the SEC’s summons in this case.

Intuitive Machines Shares Jump 24% on Stronger Space Contracts and Cash Position

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Shares of Intuitive Machines surged 24% on Monday after the space company reported a significant increase in fourth-quarter revenue, bolstered by higher contracts and a strengthened cash position. The surge in shares follows the announcement of additional contracts for direct-to-earth services, which position the company to benefit from the contract’s potential $4.8 billion maximum value.

Intuitive Machines specializes in providing communication and navigation services for spacecraft, such as lunar landers and orbiters, to link them to Earth’s ground stations, supporting NASA’s Artemis program and lunar exploration efforts. A key revenue driver for the company is its space contracts rather than launch missions, with notable contracts including a $719 million Omnibus Multidiscipline Engineering Services agreement and a $4.82 billion near space network contract with NASA.

The company also reported an increase in its backlog, which grew by $59.8 million to $328.3 million, largely due to new contracts with NASA. Analysts have pointed to Intuitive Machines’ improved financial position and upcoming missions as indicators of future growth. In the fourth quarter, the company posted a revenue of $54.6 million, up from $30.7 million in the previous year, and its cash balance stood at $385 million as of March 10, an increase from $207.6 million at the end of 2024.

Despite a challenging start to the year, with shares dropping 61% largely due to issues with its second moon landing, the company’s financial outlook is strong.