The EU has set a strategic ambition to more than double its share of semiconductor manufacturing to 20 percent by 2030. Although there is general agreement on the need to strengthen the EU’s positioning in the semiconductor industry, discord regarding the right strategy to achieve this goal divides European political and business leaders.

Europe would significantly benefit from local leading-edge chip manufacturing and is well positioned to succeed

Success at the forefront of semiconductor technology relies on a combination of advanced engineering (research and design) and manufacturing (equipment and fabrication) capabilities. Integrating these domains has been a historical strength of Europe, for instance in the automotive industry. Europe holds strategic assets in the semiconductor value chain. Backed by leaders in fab equipment, top R&D capabilities and engineering talent, a stable political environment, excellent infrastructure, and the necessary financial muscle, Europe has what it takes to reestablish the region’s competitiveness in leading-edge semiconductor technology.
Strengthening leading-edge semiconductor technology can bring Europe significant economic benefits. A leading-edge semiconductor manufacturing fab creates more than two times the initial investment in economic impact (see figure 2).

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