ECON members adopted the draft opinion on the European Chips Act, highlighting in particular the importance of chips to achieve the European Green Deal's objectives and the need to produce semiconductors in a more circular way, in order to reuse raw materials and be less dependent on suppliers from outside the EU. The current crisis has revealed structural weaknesses in European value chains.

The opinion notes that local and regional authorities (LRAs) have a strong shared interest in having a secure supply of semiconductors due to their local economies' high, indirect dependence on them. Therefore, given their proximity to semiconductor ecosystems, LRAs should be given a key role in implementing the European Chips Act.

To support the expansion and diversification of the chip sector in the European Union, LRAs urge the EU to invest more on the Chips Act implementation, building first on existing clusters and ecosystems. Cities and regions can play a major role to strengthen the European semiconductors industry by bringing together all involved actors to further develop local production and research facilities. In addition, they are ready to increase investment on training and upskilling at regional level".

The opinion criticises the financial envelope proposed for the ECA as being far too low and calls for the semiconductor sector must be considered a high priority in the next multiannual financial framework (MFF). In this regard, the rapporteur Thomas Schmidt, Minister for Regional Development of the Free State of Saxony, stated: "The European Chips Act is the right initiative at the right time. We must continue to consolidate our strengths in the EU and promote research and development of new technologies. To do this, the EU must provide more money and we need more funds in the next Multiannual Financial Framework (MFF) 2028—2034."

Addressing members of the CoR Schmidt also stressed the need to invest in training. "A key to the success of the chips act is the training of skilled workers from research to production through the establishment of a 'Knowledge and Innovation Community (KIC) on Semiconductors' and a 'Semiconductor Academy' following the example of the 'Battery Academy'. SMEs should also get access to new pilot lines and the new 'Chip Joint Undertaking'."

The opinion is scheduled to be adopted in the CoR plenary session, which will take place during the 20th European Week of Regions and Cities in October.

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