Semiconductor industry representatives have urged the European Commission to launch a follow-up to the 2023 Chips Act.

During a meeting in Brussels, groups like European Semiconductor Industry Association (ESIA) and Semi Europe proposed ‘Chips Act 2.0,’ focusing on chip design, materials, and equipment alongside manufacturing.

They plan to submit the proposal to Commission digital chief Henna Virkkunen.

The meeting included key industry players such as NXP, STMicroelectronics, Infineon, Bosch, ASML, ASM, Zeiss, and Air Liquide.

While the Commission has not outlined specific semiconductor plans, it aims to introduce five initiatives this year to boost European investment, particularly in AI.

The 2023 Chips Act spurred manufacturing investment but faced criticism for limited support for advanced chipmakers and a slow EU approval process.

Despite this, European firms saw it as necessary to compete with US and Chinese state-backed programs.

Recently, nine European countries formed a coalition with the Commission to strengthen the region’s chip industry, emphasizing “legacy and foundational” chips amid rising competition from China.