All 27 of the EU’s countries have agreed to a €45 billion plan to fund the production of computer chips, putting the bloc a step closer towards its goal of reducing its reliance on US and Asian manufacturers.

The Czech Republic, which holds the rotating EU presidency, told Reuters that EU envoys unanimously backed an amended version of the European Commission’s proposal.

The EU representives agreed to several amends, which included allowing state subsidies for a broader range of chips and not just the most advanced ones.

The news agency said that EU ministers will convene on 1 December to officialise the chip plan, although it will still need to be debated with the European Parliament next year before it can become law.

The EU reportedly hopes its plan will help the bloc achieve 20 per cent of global chip capacity by 2030, having come up with the proposal after last year’s global chip shortage, which saw bottlenecks for sectors, including healthcare and telecoms.

In 2021, the shortage prompted Apple to delay the release of its iPhone 12 handset by two months due to Covid-19 related production issues.

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