SEMI Europe Urges Minimal Restrictions on Outbound Investments

SEMI Europe, representing the semiconductor industry, has urged the European Union to minimise restrictions on outbound investments in foreign computer chip technology by EU-based companies. The plea comes as the EU considers proposals to screen outbound investments, particularly in the semiconductor, AI, and biotechnology sectors. No decision is expected before 2025.

The U.S. has already proposed draft rules to ban certain investments in China that could pose national security threats, aiming to prevent U.S. technology from aiding Chinese advancements. SEMI Europe warned that similar restrictions in the EU could harm European semiconductor companies by limiting their investment freedom, potentially diminishing their agility and relevance.

In its recommendations, SEMI Europe highlighted concerns that proposed EU policies might be overly broad and could require companies to disclose sensitive business information. The group also argued that restricting cross-border research cooperation would be detrimental.

“We encourage the European Commission to further address these aspects and to not infringe on the ability of European multinational companies to carry out the necessary investments to sustain their operations,” SEMI Europe stated.

SEMI Europe represents around 300 semiconductor firms and institutions, including major players like ASML, ASM, Infineon, STMicroelectronics, and NXP, as well as research centres such as imec, CEA-Leti, and Fraunhofer.

In addition to considering outbound investment screening, the EU is also moving towards legislation to screen inbound investments that could pose security risks, such as purchases of European ports, nuclear plants, and sensitive technologies.