This paper evaluates the European Chips Act as a response to the European Union’s reliance on non-EU semiconductor producers and suppliers to achieve strategic autonomy. To examine the motivations for the European Chips Act, the paper applies the concept of market failure to assess whether such a major market intervention is economically justified. The analysis reviews the Act’s structure and objectives and compares them with those of the United States CHIPS and Science Act. Drawing on policy reports, the paper finds that while the Act establishes a foundation for strategic autonomy, it lacks transparency, measurable outcomes, and effective coordination. The paper concludes that the Act is a necessary first step and improves prospects of microchip production in the EU, but is insufficient on its own to secure the EU’s position in global microchip production.
- Quote paper
- Philipp Orzessek (Author), 2025, The Chips Act. Prospects of Microchip Production in the EU, Munich, GRIN Verlag, https://www.grin.com/document/1672912
