EU Presidency Proposed Compromise on Chips Act 2.0
The draft compromise eases reporting requirements for semiconductor companies regarding supply chain risks.
Updated on Sept. 30, 2026 in Semiconductors
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The Irish Presidency of the Council of the EU released a draft compromise on the Chips Act 2.0. This proposal aims to reduce the administrative burden on companies while strengthening supply chain security.
Why it matters
The proposal seeks to ensure that public investments effectively enhance the resilience of the Union's semiconductor value chain. It addresses security concerns while limiting reporting obligations to data that is reasonably obtainable by economic operators.
The draft compromise modifies requirements for the Chips Act 2.0 framework. It stipulates that failure to comply with notification obligations is not subject to formal penalties.
The players
Irish Presidency of the Council of the EU
This administrative body currently holds the rotating Presidency and is responsible for steering legislative negotiations within the Council of the European Union.
Council of the European Union
This institution represents the member states' governments and is a key legislative body that must reach consensus on the proposed Chips Act 2.0.
The details
The proposal clarifies that binding measures to address supply risks must be exceptional, time-limited, and subject to periodic review. Domestic entities are now defined as those controlled by EU undertakings or based in countries with existing free-trade or strategic partnership agreements.
Timeline
2025: Geopolitical supply disruptions occurred between China and the United States.
7 October 2026: Member State experts are scheduled to discuss the draft compromise.
Roadmap
This draft follows a pattern set by the Chips Act 2.0 to balance European industrial autonomy with the practical realities of global manufacturing. It marks a shift toward more flexible regulation to ensure the resilience of the Union's semiconductor value chain.
The proposed easing of reporting requirements aims to reduce costs for industry operators, potentially preventing unnecessary price spikes for semiconductor-reliant consumer goods. By focusing on essential data, the regulation aims to maintain supply stability without hindering market operations.
The takeaway
This adjustment reflects a broader effort to mitigate the risks exposed by 2025 geopolitical tensions while preventing over-regulation. The compromise suggests that EU authorities prioritize long-term resilience over immediate punitive measures.
What happens next
Member State experts are scheduled to convene on 7 October 2026 to discuss the details of the draft compromise.
Further reading
For more background on the evolving regulatory environment, visit our Semiconductors section.
More information
Review the full Chips Act 2.0 draft document for specific regulatory language.
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Should governments reduce reporting requirements for private companies to ease their administrative burden?
