The European Chip Act has officially come into effect, with the goal of accounting for 20% of the world's chip production by 2030.

CTOnews.com September 21 news, according to CCTV news, 21 days local time, Europe's "chip bill" officially came into effect. A notice issued by the European Commission on the same day said that the program promotes the industrialization of key technologies through the European Chip Plan and encourages public and private companies to invest in the manufacturing facilities of chip manufacturers and their suppliers.

Europe accounts for less than 10% of the global semiconductor production market and relies heavily on third-country suppliers, the announcement said. If the global supply chain is seriously disrupted, the European industrial sector could be exhausted in a short period of time, bringing European industry to a standstill.

Under the framework of the bill, the EU plans to establish a coordination mechanism between member States and committees to strengthen cooperation among member States, monitor chip supply, estimate demand, and activate emergency mechanisms if necessary.

In July this year, the European Parliament passed the Chip Act. The EU Chip Act aims to create conditions for the development of European semiconductor industrial bases, attract investment, promote research and innovation, and prepare Europe for future chip supply crises. The plan will mobilize 43 billion euros (CTOnews.com Note: currently about 334.97 billion yuan) of public and private investment (3.3 billion euros from the EU budget) and aims to increase the EU's share of global chip production from the current 10 per cent to 20 per cent by 2030 to meet the needs of its own and world markets.