Pushing EU Semiconductor Sovereignty
The European Union is stepping up its plan to secure strategic autonomy in the global tech landscape. A new law received full backing in the European Parliament, with a vote that affirms a substantial investment package—3 billion 300 million euros—to bolster the semiconductor industry across member states. Semiconductors, tiny chips with outsized influence, power critical sectors from automotive manufacturing to everyday consumer electronics, making this policy a cornerstone of Europe’s industrial strategy.
Attention is focused on a global chip shortage that underscored Europe’s exposure in essential supply chains. The crisis highlighted that the continent’s share of worldwide semiconductor production remains under 10 percent. In response, lawmakers propose raising this share to at least 20 percent by 2030, a target that would mark a profound shift in Europe’s industrial balance and resilience.
To reach that ambitious goal, the legislation creates an enabling environment for investment and provides ongoing support for companies committed to building and expanding semiconductor fabrication capabilities within the EU. It also streamlines permitting processes and channels the 3,300 million euros into research and innovation to accelerate new processes, designs, and manufacturing technologies for chips used across the economy.
The plenary session delivered broad consensus in favor of the measure, with 587 votes supporting the proposal. The approval by the Parliament lays the groundwork for formal adoption, contingent on the Council of Europe’s final sign-off before enactment. The path to law reflects shared commitment across European institutions to reduce dependence on external suppliers and to strengthen strategic autonomy in a critical technology sector.
The European Commission will play a central role in shaping how this market evolves. Its mandate includes assessing supply risks and, if a future chip shortage crisis threatens the bloc, deploying emergency measures. These instruments can include joint procurement for member states and prioritization strategies intended to safeguard supplies for the most affected industries, ensuring continuity of essential manufacturing activities and consumer goods access.
By advancing this framework, the EU seeks to fortify its standing on the world stage and lessen reliance on external actors. The plan aims to raise domestic production capacity, expand local supply chains, and reinforce resilience across Europe’s semiconductor ecosystem. Lessons from 2020—when shortages disrupted production lines and inflated costs—underscore the importance of a robust, self-sustaining industry that can weather future shocks and support a rapid recovery for the European economy. The strategy envisions a network of regional fabs, supplier ecosystems, and research hubs that collaborate to push technology forward and keep Europe competitive in a fast-changing global market. [Citation: European Parliament and EU Commission semiconductor strategy, 2024]