The European Semiconductor Industry Association (ESIA) urged the European Union on Monday to accelerate financial support, develop a revised "Chips Act 2.0" initiative, and appoint a representative to advocate for the semiconductor sector.

In their statement, the association emphasized that the new EU Commission's chip policy should minimize export limitations, concentrate on sectors where European firms excel, and expedite the distribution of aid.

They asserted, "The appointment of a dedicated 'Chips Envoy' to oversee the comprehensive industrial policy for semiconductors is essential."

The ESIA, which includes major chip manufacturers such as Infineon, STMicroelectronics, and NXP, along with leading equipment producer ASML and research institutions like imec, Fraunhofer, and CEA-Leti, called for the swift implementation of an "immediate Chips Act 2.0."

The initial EU Chips Act, introduced in April 2023, was designed as a €43 billion subsidy initiative aimed at increasing Europe's global chip market share to 20% by 2030.

A recent comprehensive analysis conducted by the German think-tank Interface revealed that Europe is unlikely to achieve the targets established by Commission industry chief Thierry Breton. The region has not maintained a 15% share of the global market over the past four decades; however, the initial Chips Act successfully directed policymakers' focus toward the semiconductor industry.

Significant initiatives under the first Chips Act included a €10 billion ($11 billion) facility that Taiwan's TSMC commenced construction on last month in Dresden, along with a €30 billion project proposed by Intel in Magdeburg, Germany.

Nevertheless, due to Intel's ongoing business challenges, the Magdeburg project has not yet received EU approval for financial assistance and has faced delays, raising concerns about its eventual realization.

Regarding export policy, the European Semiconductor Industry Association (ESIA) recognizes the necessity of safeguarding technology and ensuring security.

However, it emphasized that "a more constructive approach to economic security is essential, one that focuses on support and incentives rather than a defensive strategy reliant on restrictive and protective measures."

ASML has been prohibited from exporting the upper tier of its product line to clients in China, as the European Union and the Netherlands have aligned with U.S.-led restrictions aimed at curbing China's technological and military progress.

On Friday, Dutch Prime Minister Dick Schoof stated that his government will consider ASML's economic interests when further tightening export regulations to China.