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NXP warns EU microchips funding falls far behind 2030 targets

DRESDEN — The leader of one of Europe’s most prominent microchips companies on Thursday warned the bloc’s intended investment into the semiconductor industry isn’t enough to reach its 2030 targets.

In fact, it’s not even close.

“We have calculated that we would need €500 billion investment in Europe to reach the 20 percent market share goal formulated in the EU Chips Act,” Kurt Sievers, chief executive officer of NXP Semiconductors, a leading chips designer and maker founded in the Netherlands, said at an industry gathering in Dresden.

The European Commission proposed a European Chips Act in February that would unlock private and public investments up to €43 billion, in an effort to boost its share in the global semiconductor market to 20 percent by 2030 from 10 percent today, a target announced last year. The bloc also has other, smaller investment programs running.

“Reaching 20 percent world market share coming from 10 percent requires tripling or quadrupling our capacities,” Sievers said, flagging how the €43 billion package falls well short of this.

The CEO’s comments underline lingering questions over the EU’s chips plan’s feasibility and its funding, which is a mix of existing and promised budget lines and political commitments that are hard for the industry and its investors to navigate.

This article is part of POLITICO Pro

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