The European Commission Tuesday presented the European Chips Act–a multi-billion dollar initiative aimed at developing a thriving semiconductor ecosystem and enhancing supply chain resilience–in an effort to emerge as a global leader in the semiconductor industry.

The proposal by the Commission comes against the backdrop of huge semiconductor supply chain shortages and extreme global dependence on a limited number of actors, in an increasingly complex geopolitical setting. The semiconductor shortage in recent years has led to factory closures. It has also impacted many different industries, from cars to smartphones to healthcare devices.

The Chips Act is envisioned to build upon the EU’s strengths in areas of research, technology and equipment manufacturing. It aims to leverage these strengths to reduce semiconductor dependency and bolster competitiveness and supply chain resilience. With this proposal, the EU intends to mobilize €43 billion in public and private investments to build capacity and respond to any future supply chain disruptions. It aims to double its current market share to 20 percent by 2030.

The act was first announced last year during Commission President Ursula von der Leyen’s State of the Union speech, where the need to link world-class research, design and testing capacities of the member states and coordinate investment along the value chain was highlighted.

On Tuesday, speaking on the act, von der Leyen said: “The European Chips Act will be a game changer for the global competitiveness of Europe’s single market.” She further pointed out that in the short-term, the act will increase EU’s resilience to future shortages, while in the mid-term, it will make the bloc a leader in this industry.

The Chips Act will now be taken up for discussion by the European Parliament and member states. If adopted, it will be applicable across the continent.