'The EU Chips Act is another epic failure of state planning'

The European Chips Act has been a complete disaster. That holds a broader lesson for governments, says Matthew Lynn

President of the European Commission Ursula von der Leyen
Ursula von der Leyen: let’s repeat the mistake
(Image credit: Thierry Monasse/Getty Images)

“It will make Europe a leader in this market,” boasted Ursula von der Leyen, the president of the European Commission, when the Chips Act was passed back in 2023. The Commission was to mobilise €43 billion in public and private investment in microchips to make the continent a world leader in technology. It would pump money into research, development and state-of-the-art technology.

At the time, there was a global shortage of processors, and the US under Joe Biden was pursuing an even more ambitious strategy of self-sufficiency in chipmaking. It seemed vital Europe followed that lead. The target was 20% of the global market by 2030, double the percentage when the programme was announced.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.