EU countries want chip bill to fund current cutting-edge chip production

Some EU countries want the bloc's multi-billion-euro chip program to fund the production of current cutting-edge chips, not just the first-ever chips proposed by the European Commission, according to an EU document seen by Reuters.

It is reported that in the context of global shortages and supply chain bottlenecks, the EU announced the "Chip Act" this year, which will ensure that the EU has the necessary tools, skills and technical capabilities to achieve advanced chip design, manufacturing, packaging and other aspects. Upgrade to ensure the stability of the semiconductor supply chain in the EU region and reduce external dependence.

However, the EU executive said the 45 billion euro ($43.7 billion) plan would only allow countries to finance "first-of-its-kind" production facilities in Europe. The proposal needs to be discussed with EU countries and lawmakers before it becomes law.

EU diplomats say some countries want state aid to make existing leading chips used by their carmakers.

The Czech Republic, which currently holds the EU's rotating presidency, has proposed a compromise that could apply to a wider range of government-subsidized chips, the document said.

Criteria for "first-of-its-kind" facilities may include innovations that increase computing power or security, or reliability levels or energy and environmental performance, the document said.

EU ambassadors are likely to agree on a common position in early December, when they will start negotiations with EU lawmakers to finalize legislation.