The European Commission is pushing for self-sufficiency after the global semiconductor shortage has proven unreliability in sourcing material from Asian and U.S. suppliers. This was highlighted in plans that were announced on Wednesday for a new chipmaking “ecosystem”.

Commission President Ursula von der Leyen feels that ‘digital is the make-or-break issue’ and announced in a policy speech at the Parliament in Strasbourg on Wednesday that a new Chips Act for Europe will be presented. Its aim will be to jointly create a state-of-the-art European chip ecosystem, including production.

The source of the EU legislators’ concerns was cited as the global shortage of semiconductors that has led to production slowdowns and delays for a variety of products that rely on chips for data processing – from cars and trains to smartphones and other consumer electronics.

The Europe Chips Act will also aim to link together the European Union’s semiconductor research, design, and testing capacities. This will help boost the bloc’s self-sufficiency and will develop new markets for ground-breaking European tech.

The Act will be made up of three elements: Firstly, a semiconductor research strategy that will amplify work being done by institutions such as LETI/CEA in France, IMEC in Belgium, and Fraunhofer in Germany.

The second component will be a coordinated plan to increase chipmaking capacity in Europe. And the final part will establish a framework for international partnership and cooperation.

“There is no digital without chips,” said von der Leyen. “While we speak, whole production lines are already working at reduced speed despite growing demand, because of a shortage of semiconductors.

She also emphasized that while global demand has exploded, Europe’s share across the semiconductor value chain has shrunk. The matter was declared as something not just about competitiveness, but about tech sovereignty.

Lastly, in additional documents released today, the EU said that the Chips Act will bolster existing initiatives such as the Digital Markets Act and Digital Services Act that aims to contain the power of internet giants, Artificial Intelligence Act for the regulation of applications of AI, and a beefed-up code of practice that tackles online disinformation. This will be combined with a boost to the investment in regional digital infrastructure and skills.

In other related news, Qualcomm’s CEO has confirmed plans to work with European foundries to boost chip production.

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