Semiconductors have become the defining battleground of geopolitical power, yet Europe remains structurally exposed—consuming around 20% of global chips while producing less than 10%. As techno-nationalism reshapes the industry, the EU’s current strategy—focused on scaling domestic manufacturing—is increasingly misaligned with the realities of global competition.
This report argues that Europe cannot win a race for volume. Instead, it must pivot toward an asymmetric strategy that secures control over critical chokepoints in the semiconductor value chain—from advanced packaging to key equipment and materials. By leveraging its existing strengths and focusing on high-value segments, Europe can transform vulnerability into strategic leverage.
Looking ahead to a “Chips Act 2.0,” the report outlines a roadmap for building resilience, securing supply, and positioning Europe as an indispensable player in the global semiconductor ecosystem—where sovereignty is defined not by scale, but by control and interdependence.