EC Official: Chips Act Proposal Expected Soon, DMA/DSA Moving Forward

A European Commission proposal on semiconductors could emerge shortly, Internal Market Commissioner Thierry Breton said Monday in an online Politico interview. The European Chips Act is needed because Europe must be able to produce more on its soil and export more chips, he said. The EC wants to ensure the right level of R&D and have the appropriate level of cooperation between Europe and its partners, he said. It makes sense for the EU to spread its chip investment across the continent, but boosting chip manufacturing requires capacity, a good level of stable energy and other elements, so ramping up production must be done where those factors exist, he said. The EC announced an industrial alliance on microchips, and Breton was asked whether that alliance would welcome companies like Intel from outside Europe. Europe must first establish its own strategy, he said: Once that's done, players from elsewhere will be welcome. On the Digital Services Act (DSA) and Digital Markets Act (DMA), Breton hopes to conclude the measures under the current EU French presidency, which ends July 1. Three recent developments are worrying European telcos, said European Telecommunications Network Operators Association Director General Lise Fuhr, who hosted the event. They're starting to grasp the effects of global technical turmoil, which will affect Europe more than the U.S.; American companies have launched a new initiative to conquer the "metaverse"; and operators more clearly recognize how today's tech power becomes unrivaled economic power, as shown by Apple's revenue. But telcos have reasons for confidence in the EU, she said: It changed its approach to new technologies and is less naive about big tech, as shown by the DMA/DSA; it has started to see the correlation between big tech and green issues; and policymakers are starting to view the tech sector as a growth industry rather than something to squeeze for revenue. Nevertheless, she warned, ETNO's reasons to be confident don't relieve its concerns.