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EU Nations Push for Faster Progress in Semiconductor Industry

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A coalition of nine European Union countries, including Italy, France, Germany, Spain, and the Netherlands, is accelerating efforts to strengthen the EU’s semiconductor industry. The group aims to present proposals for enhancing the sector by summer, according to Dutch Economy Minister Dirk Beljaarts.

The coalition is working on “homework for the new Chips Act,” referring to the potential second EU funding program for the semiconductor industry, following the initial 2023 Chips Act. While the 2023 Act has been credited with preventing the decline of Europe’s chip industry amid larger support programs from the US and China, it has faced criticism for being too slow to meet key goals.

Beljaarts emphasized the need for more targeted funding in the upcoming Act, calling for both private and public investments to support the sector. He also highlighted the importance of ensuring that small and medium-sized companies benefit from this funding. Despite Europe’s strengths in research and development (R&D), he noted gaps in areas like chip packaging and advanced production, particularly after Intel’s decision to shelve plans for a cutting-edge factory in Germany.

The coalition is also exploring internal demand within EU countries to encourage investment from companies, ensuring that it is worthwhile for them to invest in the region.

The European Commission has expressed strong support for the initiative, which aims to complement, rather than undermine, the Commission’s efforts.

Netherlands in Talks with Nvidia and AMD for AI Supercomputer Facility

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The Dutch government announced on Thursday that it is in discussions with U.S. semiconductor companies Nvidia and AMD regarding the supply of hardware and technological expertise for a proposed artificial intelligence (AI) supercomputer facility. The initiative is part of broader efforts within the European Union to boost the region’s digital economy and advance AI research.

The Netherlands aims to establish a cutting-edge facility that would play a pivotal role in AI research and development, contributing to the continent’s technological competitiveness. Last year, the Dutch government allocated 204.5 million euros ($210 million) toward AI investments, with plans to leverage European Union subsidies as well.

Dutch Economy Minister Dirk Beljaarts noted that discussions with Nvidia and AMD have strengthened the likelihood of successfully realizing the project. While he did not provide specific details, he emphasized the global competition for AI technology, remarking that “the whole world is after this technology.” The minister indicated that these talks bring the vision of a Dutch AI facility much closer to reality.