John Paul Phelan
Question:237. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment his views on the EU Chips Act; and if he will make a statement on the matter. [30423/23]
View answerThursday, 22 June 2023
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Semiconductor chips are ubiquitous in our daily lives, and they are needed in almost every vital sector and service. They have critical application for health, energy, communications, and automation and as such are central to the European Union’s digital and green transitions.
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 18th April, EU Member States and the European Parliament reached political agreement on the EU Chips Act. The Chips Act is an important strategic regulation with three main goals. It aims to further develop the RDI landscape in Europe; it will also enable Europe to increase its capacity to manufacture semiconductor microchips; and, finally, the Chips Act sets out a series of measures to protect our security of supply.
Officials across Government have been involved at every stage of the negotiation process and we welcome the agreement. As a leading home for semiconductor technology, the Government recognises that Ireland is well-placed to play our part in realising the goals of the Chips Act and to increase research and manufacturing investment in Ireland.
The semiconductor sector in Ireland has also grown deep roots over the past 45 years. This long history has developed a rich talent pool and extensive ecosystem with strong research links across each element of the value chain, from design to architecture, manufacturing, systems and applications. There are over 20,000 people currently employed in Ireland's semiconductor industry, part of a 175,000-person strong broader ICT sector.
As we transition to a greener and digitalised future, demand for semiconductor chips will only grow; the Chips Act will help to ensure that we have the means to achieve these transitions. The Irish Government is looking forward to the next phase of implementation of the Chips Act and to realising this opportunity both for Ireland and for Europe.