EU Criticized for Lagging Behind in Chip Strategy

2025-05-06 semicon

Brussels, Tuesday, 6 May 2025.
The European Court of Auditors urges a rethink of the EU Chips Act, highlighting its failure to significantly boost EU’s semiconductor market share amid global competition.

Ambitious Targets vs. Reality

The European Union’s semiconductor strategy faces significant challenges as recent analysis reveals a substantial gap between ambition and achievable outcomes. The European Commission’s own forecasts indicate the EU’s market share will only reach 11.7% by 2030, falling well short of its 20% target [1][2]. According to Annemie Turtelboom, the European Court of Auditors member overseeing the audit, meeting the 20% target would require approximately quadrupling current production capacity by 2030, an objective that appears increasingly unrealistic [5].

Financial Constraints and Global Competition

The funding disparity presents a stark challenge, with the EU executive controlling just €4.5 billion (5%) of the total €86 billion allocated for the Chips Act through 2030 [1]. This investment pales in comparison to global competitors, who have committed €405 billion for the 2020-2023 period alone [1]. The situation is further complicated by the fact that 60% of global chip production investments are concentrated among three major players: TSMC, Intel, and Samsung [6].

Strategic Initiatives and Industry Response

Despite these challenges, the EU is actively pursuing strategic developments. On April 29, 2025, the EU launched the Chips Design Platform, coordinated by imec and involving 12 European partners [4]. This initiative aims to support semiconductor startups and SMEs with access to design infrastructure and training. Additionally, the APECS pilot line, launched in December 2024 with €730 million in funding, represents a significant step toward advancing European semiconductor capabilities [7].

Path Forward

The European Court of Auditors has identified four critical issues hampering progress: overly ambitious goals, insufficient competitiveness against leading nations, fragmented funding, and inadequate data oversight [5]. In response, the ECA recommends preparing for a ‘Chips Act 2.0’ with more realistic objectives [5]. The Commission has a legal obligation to evaluate the Chips Act by September 2026, providing an opportunity to address these structural challenges [1].

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