EU Senate Approves Law to Boost Chip Production Amid Crisis

The Senate has approved a bill aimed at bolstering chip production within the EU, particularly in response to the challenges posed by the COVID-19 pandemic. This legislation is part of the broader European Chips Act, which seeks to enhance the semiconductor ecosystem in Europe. The Ministry of Industry is set to present a National Semiconductor Strategy later this year, outlining specific measures to support the semiconductor industry in the Czech Republic. The global semiconductor shortage during the pandemic significantly impacted various industries, including the automotive sector, with companies like Škoda Auto in Mladá Boleslav having to limit their production due to a lack of chips. The new law designates the Ministry of Industry and Trade and the Ministry of Education, Youth, and Sports as the national authorities responsible for implementing the Chips Act. To ensure effective monitoring of the semiconductor market, member states are required to keep track of key players and report any imminent crises to the newly established European Semiconductor Board. This advisory body will facilitate communication between the European Commission and companies regarding their production capacities and material states. In a related development, Onsemi, a U.S. semiconductor manufacturer, announced plans to expand its production facility in Rožnov pod Radhoštěm, with an investment of two billion dollars. This expansion is contingent upon negotiations for an investment incentive package with the Czech government, which will also require approval from the European Commission.