EU to propose microchips law in early February, EU chief says

Ursula von der Leyen

The European Commission will propose a draft legislation for the regulation of microchips in Early February, European Commission president Ursula von der Leyen said on Thursday, as the EU's need for chips is set to double in the next decade.

"Most of supplies come from a handful of producers outside Europe. This is a dependency and uncertainty we simply cannot afford," von der Leyen said during the opening of the World Economic Forum.

ALSO READ: Tata Steel, JSW Steel regain as EU levies duty on imports from China, Russia, US

"By 2030, 20% of the world's microchips production should be in Europe," she said.

The proposal, known as the European Chips Act, will aim to adapt state aid rules, improve tools to anticipate shortages and crisis and strengthen research capacity in the bloc.