Europe's next chip strategy needs customers as well as factories

EU competitiveness ministers discussed the Chips Act 2.0 proposal on 2026-09-24. According to the Council's account, strengthening European demand featured alongside reducing external dependencies. The meeting did not adopt a new chip regulation already applicable to businesses.

The legislative background distinguishes the earlier Chips Act from the new Commission initiative, on which the EU legislators still need to form their positions. That distinction matters when timing corporate investment.

Editorial analysis. Manufacturing capacity is not the same as a competitive product. Customers must qualify a component made in a new plant, incorporate it into their products and order sufficient volumes. Faster permitting alone cannot perform that commercial task.

For Hungarian automotive and electronics suppliers, usable technology, delivery reliability and switching costs therefore matter together. The most advanced production process is not necessarily appropriate for every industrial application. Procurement should start with the technical requirement, rather than the size of a funding announcement.

Companies also need to check whether a new supply arrangement meets operating requirements and whether switching could interrupt production.

The next checkpoints are the final legislation and concrete customer orders. If new capacity fails to attract sustained demand, greater production capability will not necessarily translate into a stronger business position.