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Europe’s semicon future – industry recommendations for EU Chips Act 2.0 

Industry Recommendations for the EU Chips Act 2.0 is a position paper submitted by Svensk Elektronik/Semicon Sweden. It outlines recommendations for the crucial steps for Europe to take to strengthen its technological sovereignty and global competitiveness. The paper further calls for a balanced and industry-aligned strategy that supports the entire electronics value chain to ensure a resilient and innovation-driven industrial base.

From national coordination to European alignment

Open the Position Paper with Industry Recommendations for the EU Chips Act 2.0 Submitted by: Svensk Elektronik / Semicon Sweden in October 2025. 

National coordination: Svensk Elektronik hosts the Semicon Sweden initiative, supported by Tillväxtverket and partners (RISE, Lund University, Halmstad University, Ideon Science Park, PhotonicSweden). The initiative aims to establish a cohesive national platform – a common voice for Sweden’s semiconductor ecosystem. 

Strategic goal: To strengthen Sweden’s position in Europe and establish the country as a significant player in semiconductors, AI, and quantum technology. 

European alignment: Sweden is a member of the European Semiconductor Coalition, aiming to gain influence over the Chips Act 2.0.  

Swedish industry scope: The broader Swedish electronics industry (including companies that use electronics in their products, like Ericsson) employs approximately 260,000 people across 8,000 companies, with a turnover of SEK 1,000 billion. 

Sweden’s call for a unified European strategy 

The upcoming iteration of the EU Chips Act (Chips Act 2.0) is recognized as a pivotal opportunity to consolidate Europe’s role in global semiconductor value chains. While the original EU Chips Act (2023) established an important foundation by mobilizing public and private investments, rapid technological evolution, increasing geopolitical developments, and industrial interdependence require a more integrated and forward-looking strategy. 

Svensk Elektronik, representing Sweden’s advanced electronics and semiconductor sector and host of Semicon Sweden, stresses that successful implementation requires clear industrial alignment. Policy should be firmly anchored in the operational realities of European industries and market demands. Sweden is actively involved in this strategic discussion, evidenced by its participation in the European Semiconductor Coalition and the signing of the Semiconductor Coalition Declaration. Sweden’s vision is to serve as a strategic innovation hub within the European semiconductor value chain, combining technological excellence, sustainability, and industrial competitiveness.

 

Nine key priorities for EU Chips Act 2.0 

To bridge the gap between world-class European research and commercial execution, the position paper identifies nine primary recommendations: 
 

  1. Align policy measures with industrial and end-market realities.  
  1. To strengthen Europe’s position in global semiconductor value chains.  
  1. Integrate research and innovation with industrialization.  
  1. Improve financing instruments and establish a dedicated semiconductor budget.  
  1. Develop a strategy for strategic electronics manufacturing in Europe.  
  1. Build resilience to ensure stable semiconductor supply for critical sectors.  
  1. Bridge the scale-up gap for European start-ups and SMEs.  
  1. Focus on Europe’s strengths and opportunities in AI.  
  1. Enable innovation across the entire electronics value chain – focusing on resilience. 

Together, these recommendations form a roadmap for how Europe can transform its semiconductor ambition into industrial reality. By aligning policy with the operational strengths of its industries, Europe can foster a more resilient, competitive, and innovation-driven semiconductor ecosystem.

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Explore the initiatives shaping Sweden’s and Europe’s semiconductor landscape:

  • Industry Recommendations for the EU Chips Act 2.0: Read the full position paper submitted by Svensk Elektronik / Semicon Sweden. Link to be added  
  • The Semicon Sweden Initiative: A national initiative to coordinate the Swedish semiconductor voice endeavors, building capacity and knowledge across the entire value chain, and developing a strategy for niche production in Sweden. 
  • The European Chips Act (EU Chips Act): The foundational EU regulation, which mobilizes over €43 billion (approx. 487 billion SEK) in investments, targeting to double the EU’s global semiconductor market share to 20% by 2030. 
  • EU Pilot Lines: Facilities like the FAMES Pilot Line (€830 million budget until December 2028) provide open access to advanced chip technology solutions (such as FD-SOI technology, eNVM, RF components, and 3D stacking) to European stakeholders, bridging the gap between research and industrial application. 

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