Brussels has witnessed a strong wake-up call from the semiconductor industry. The SEMI (Global Semiconductor Industry Association) and the ESIA (European Semiconductor Industry Association) held a high-level roundtable at the European Parliament, where they urged lawmakers to strengthen the European semiconductor strategy. The meeting, hosted by Members of the European Parliament Bart Groothuis, Oliver Schenk, and Dan Nica, concluded with the signing of a joint statement addressed to the Executive Vice President of the European Commission for Technological Sovereignty, Henna Virkkunen.
The industry celebrates the progress made with the approval of the European Chips Act in 2023, but considers it insufficient in the face of aggressive global competition. The joint statement calls for a more ambitious review of the European Chips Act, with increased funding for research and development (R&D), investment incentives, and measures to expedite administrative procedures.
Europe Loses Ground to the U.S. and Asia
While Europe continues to debate its future in the sector, other countries have already taken decisive action. The United States has enacted the “Chips and Science Act” with an investment of over $280 billion, of which $52 billion is allocated to domestic semiconductor production. China, for its part, has recently injected an additional $55 billion into its industry, bringing its total investment to over $100 billion.
In contrast, the European Union aims to mobilize €43 billion through public and private investment, of which only €3.3 billion comes directly from the community budget. With these funds, the EU hopes to double its global market share from 10% to 20% by 2030, a goal that experts say seems increasingly distant.
Dependence on Asia and the Shadow of the United States
Concerns are growing as key European players, such as ASML — the global leader in lithography machines — have indicated that Europe needs chips made in China to meet its internal demand. Meanwhile, its cutting-edge equipment is primarily destined for U.S. (Intel) and Taiwanese (TSMC) clients.
“Europe is lagging in investment and industrial capacity,” warned Laith Altimime, President of SEMI Europe, who emphasized the need for a holistic approach that strengthens design, manufacturing, materials, and equipment within the continent.
Three Urgent Priorities for Europe
The Vice President of ESIA, Frédérique Le Grevès, summarized the sector’s priorities: “We need a clear European strategy backed by a revised Chips Act and more agile administrative procedures. We must define an external trade policy that strengthens our resilience and continue to bet on innovation.”
An Uncertain Future for Europe?
The future of the European semiconductor ecosystem hangs by a thread. While global giants like the United States and China advance decisively, Europe still lacks a strong policy to turn its ambitious goals into reality. The pressure from SEMI and ESIA marks a turning point: if the European Commission does not take immediate action, the continent risks being sidelined in a key industry for economic and technological sovereignty.
The industry has spoken; now, the ball is in Brussels’ court.
via: SEMI