Dáil Éireann Debate, Wednesday - 19 October 2022
53. Deputy John Paul Phelan asked the Tánaiste and Minister for Enterprise, Trade and Employment the level of engagement that his Department has had on the European Union Chips Act; the impact that it will have on the semiconductor industry; and if he will make a statement on the matter. [52268/22]
View answerSemiconductors are ubiquitous in our daily lives and we need them in almost every vital sector and service. Recent supply chain challenges have revealed structural vulnerabilities in the European semiconductor value chain, exposing Europe’s dependency for supply on a limited number of companies, many of which are located outside of the EU.
On the 8th of February the European Commission announced the proposal for a regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act). Since that date, officials from my Department have been engaged in discussions on the text through the Competitiveness and Growth (Industry) Working Party within the Council of the European Union and have provided written comments on the original proposal and three further compromise texts. The proposal was also included on the agenda of the Competitiveness Council for a progress report and policy debate in June 2022.
Since the initiative was announced, my Department has also conducted a public consultation to consider views from Irish stakeholders. The results of that consultation, which took place in March 2022, can be found on the Departmental website. While negotiating the precise form of the new Regulation, my Department has also engaged extensively with colleagues across the European Union Member States as well as with colleagues across Government, the enterprise agencies, industrial representative groups, and industry too.
The current Czech Presidency included the Chips Act proposal a priority for their term and aims to achieve a general approach by the 1st December 2022.
As negotiations are ongoing, it is too early to comment on the possible impact of the measure on the semiconductor industry. Nevertheless, the Government welcomes the overall goals of strengthening the European semiconductor ecosystem and strengthening the resilience of this important industry. The semiconductor industry is of considerable importance to Ireland and we are recognised as a European centre of excellence in the manufacture of semiconductors as well as in research and development. There are over 20,000 people currently employed in the Ireland’s semiconductor industry and the latest figures show that we export €13.5bn worth of products annually.
