EU finalizes €43B plan to boost chip production and compete with U.S. and Asia.

The European Union has agreed on the Chips Act, a package of measures aimed at increasing the bloc's share of the global semiconductor value chain to 20% by 2030. The plan includes loosening rules to allow more government subsidies for advanced chip facilities, an EU microchips research and development budget, and tools to monitor potential supply shortages. The deal paves the way for a subsidy splurge that should enable the bloc to catch up with other major chips hubs like the US, South Korea, Taiwan, and China. National subsidies, to be approved under the new relaxed state aid rules, will take up the majority of the headline figure of €43 billion in investments.