Chips Act II

Chips Act II is the European Commission's proposed replacement for the 2022 European Chips Act, bundled into the Tech Sovereignty Package alongside the Cloud and AI Development Act (CAIDA). The central innovation reported by Bloomberg on 30 April 2026 is that Chips Act II grants the Commission direct equity-stake authority in semiconductor fabrication facilities, removing the member-state intermediary required under the original act. This marks a significant expansion of Brussels' direct industrial investment powers.

The original 2022 Chips Act mobilised over EUR 80bn in semiconductor manufacturing and R&D commitments but failed to meet its headline target: the EU's global chip production share is now forecast at around 12% by 2030, well short of the 20% ambition. Major fab projects including Intel's announced German plant were delayed or cancelled. Chips Act II responds to this underperformance, though not by doubling down on a capacity share target.

On 3 June 2026, the College of Commissioners had Chips Act II before it on the Tech Sovereignty Package's fourth scheduled adoption date. The 20% global market-share target has been dropped entirely, abandoned after the Magdeburg and Crolles fab cancellations demonstrated its unachievability. In its place, Chips Act II sets a EUR 120bn public-and-private investment goal to 2035, introduces EUR 300,000 fines for firms that withhold supply-chain data, and adds equity authority with crisis-override provisions and demand aggregation on the Airbus-procurement model, the same tool Bruegel's Analysis 13/2026 recommended for compute coordination.

As of publication, the College had not yet published its decision; adoption is scheduled but not confirmed. Full passage through the European Parliament and Council is expected to take until at least Q2 2027, though Commission equity powers would activate earlier under transitional provisions. For ASML and European fab investors, the question is whether Commission equity stakes accelerate or complicate private capital decisions. Commission Executive Vice-President Henna Virkkunen is due to present the package before the Telecom Council on 9 June 2026.