The European Commission will ease funding rules for innovative semiconductor plants under plans announced on Tuesday as the European Union looks to boost its chip industry and cut its dependence on U.S. and Asian supply.

The Commission's action comes as a global chip shortage and supply chain bottlenecks have created havoc for car makers, healthcare providers, telecoms operators and others.

The European Chips Act will "enable 15 billion euros ($17 billion) in additional public and private investment by 2030," Commission President Ursula von der Leyen said in a statement.

"This will come on top of 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets. And these funds are set to be matched by further long-term private investments," she said, referring to ongoing EU projects.

Smaller EU countries have voiced their unease over the looser rules, fearing a subsidy race that will favor companies in the bigger countries such as France, Germany, the Netherlands and Italy, an EU diplomat said.

Von der Leyen said the bloc will ease its state aid rules, which aim to prevent illegal and unfair subsidies granted by EU countries to companies, for innovative chip factories.

These factories may be allowed to get more state funding, EU digital chief Margrethe Vestager said, as the bloc seeks to double its global market share to 20 percent in 2030.