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Ukraine is preparing its own CHIPS Act: The Ministry of Digital Affairs plans to register the draft law in the Rada by the end of the year

The Ministry of Digital Transformation has developed a framework bill for the development of microelectronics production in Ukraine — an analogue of the European CHIPS Act. The document is planned to be registered in the Verkhovna Rada by the end of this year.

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Ukraine is preparing its own CHIPS Act: The Ministry of Digital Affairs plans to register the draft law in the Rada by the end of the year

The Ministry of Digital Transformation has developed a framework bill for the development of microelectronics production in Ukraine — an analogue of the European CHIPS Act. The document is planned to be registered in the Verkhovna Rada by the end of this year.

This was announced by Deputy Minister of Digital Transformation Natalia Denikeeva during the TECHNOVATION conference on October 28.

According to her, the development of the initiative is directly related to Ukraine’s European integration commitments. One of the key focuses is to stimulate the production of microelectronics and components within the country in order to reduce dependence on external supply chains.

"We have a plan that this draft law will be registered in the Verkhovna Rada by the end of this year. But this is a framework story… In the near future it will be sent for approval among state bodies," the official noted.

Tax incentives and working with other agencies

In parallel, the Ministry of Digital Affairs is working on amendments to the Tax and Customs Codes to introduce sectoral benefits. At the same time, the ministry acknowledges that negotiations on tax breaks are difficult due to the state of the budget, the position of the Ministry of Finance, and obligations to international creditors (in particular, the IMF).

  • Scale of investment: The production of microelectronics and semiconductors requires billions in public investment, as is the case in leading countries in the world.
  • Interdepartmental cooperation: the Ministry of Digital Affairs is working on the track jointly with the Ministry of Economy and the Ministry of Defense, which are also interested in their own component base.

After registering the framework document, the ministry plans to finalize incentive mechanisms and enter into a systematic dialogue with people’s deputies for its adoption.

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