Europe’s semiconductor strategy has gained momentum through the EU Chips Act, but achieving its ambitious target of 20% global market share by 2030 remains challenging. Funding gaps, workforce shortages, and fragmented governance risk holding back progress, while Europe’s industrial demand continues to rely more on legacy chips than cutting-edge production.
Despite these challenges, Europe already plays an indispensable role in global semiconductor supply chains. Strong positions across manufacturing, materials, and research give the EU a foundation to build upon. With better alignment of goals and resources, Europe can reinforce its competitiveness and resilience in a rapidly evolving geopolitical and technological landscape.
The report makes a set of recommendations for a more impactful Chips Act 2.0: strengthen support for legacy chips that power Europe’s core industries, scale research and pilot lines to spur innovation, expand the skilled workforce, create financing tools that attract private capital, and streamline governance through stronger coordination, potentially via an EU Chips Envoy. Together, these measures would secure Europe’s semiconductor future and reinforce its role as a trusted global partner.