Group of EU states seeks faster progress in chips industry

By Toby Sterling

THE HAGUE (Reuters) - Nine European Union countries are working to speed up plans to boost the bloc's computer chip industry and aim to present their proposals by the summer, one of the coalition's leaders said on Friday.

The coalition, which includes Italy, France, Germany, Spain and the Netherlands, is doing "homework for the new Chips Act", Dutch Economy Minister Dirk Beljaarts said in an interview, referring to a possible second EU funding programme for the semiconductor industry following the 2023 Chips Act.

That act, currently under review, failed to meet key goals but is regarded as having prevented a deterioration of Europe's industry in the face of larger state support programmes in the United States and China. 

A frequent criticism is that the process, which featured states providing funding and the European Commission approving projects, was too slow.

Beljaarts said the point was to become more targeted the second time around.

"We need to allocate funds," Beljaarts said. "Both private and public funds to push the sector, also to make sure that the trickle-down effect takes place and that (small and medium-size) companies also benefit."

He said that while Europe had top R&D and equipment players, including powerhouse ASML, gaps included chip packaging and advanced production, following Intel's shelving of plans to build a cutting-edge factory in Germany.

The coalition is examining "what the internal demand would be from European countries ... so that companies know it's worth it to start investing" he said.

Beljaarts said the new group, formally established on March 12, was aimed at helping rather than undermining the Commission.

The Commission said it "strongly supported" the initiative.

(Reporting by Toby Sterling; Editing by Mark Potter)