The recent disruptions in global supply chains have revealed how heavily German industry is still dependent on Asian semiconductor manufacturers. In the automotive industry, mechanical engineering and telecommunications in particular, it became clear that missing chips can bring entire production chains to a standstill. The consequences were delivery delays, rising costs and massive pressure on the ability to innovate. These experiences have strengthened the desire of many companies to source more semiconductors from regional or at least European production in future.
A recent survey commissioned by the digital association Bitkom now shows that companies are willing to dig deeper into their pockets for European chips – but only within clear limits.
According to the survey of 503 companies from the IT, telecommunications and manufacturing sectors, 79% of companies would pay up to 5% more for chips if they were produced in Europe. A further 17 percent could even imagine accepting a surcharge of up to ten percent. Taken together, this means that 96 percent of companies would be prepared in principle to support European semiconductors financially. However, price remains a sensitive factor, as no company stated that it would be willing to pay more than ten percent extra. Only one percent of those surveyed completely rejected higher prices.
These results clearly show that although there is a desire for regional independence, economic rationality continues to prevail. European semiconductors can therefore be more expensive – but only to the extent that they do not jeopardize the competitiveness of companies.
Bitkom President Ralf Wintergerst sees the results as a positive signal for the establishment of European chip production. The realization that security of supply and technological independence have a strategic value has now reached companies. However, digital sovereignty means more than just manufacturing chips locally. It requires a complete value chain from research and design to production, packaging and final assembly. This process is complex, capital-intensive and can only be realized with targeted political support.
Wintergerst also emphasized that the path to an independent European semiconductor industry is not a short-term project. It requires planning security, long-term support programs and a common European industrial policy. Without government incentives, such as tax breaks or investment protection, many companies would find it difficult to invest in the expensive construction of new chip factories.
Another obstacle remains the high level of bureaucracy in many EU member states. Companies complain about lengthy approval procedures, unclear responsibilities and complex funding guidelines. As a result, projects often lose months or even years of time. Many respondents therefore call for political initiatives such as the EU Chips Act to be accompanied not only by money, but above all by clear processes and pragmatic procedures.
The shortage of skilled workers also remains a key challenge. Without sufficient engineers, technicians and skilled workers, it will hardly be possible to establish independent semiconductor production in Europe. This requires targeted training initiatives, international cooperation and attractive working conditions in order to retain talent in the long term.
Overall, approval of the EU initiatives is high. Around 71% of companies rate the European Union’s measures to date positively. The EU Chips Act aims to reduce Europe’s dependence on third countries and increase its share of the global semiconductor market to around 20 percent by 2030. In addition to investments in research, development and production, new technologies such as energy-efficient chip architectures and innovative manufacturing processes are also to be promoted.
Despite this positive attitude, the industry warns that initiatives such as the Chips Act can only be effective if they are implemented consistently. This means that funding must be available more quickly, projects must be less bureaucratic and investments must be legally protected. Only in this way can Europe establish itself as a strong and independent location for semiconductor technologies.
Conclusion
In principle, the German economy is prepared to spend more money on European semiconductors if this increases security of supply and reduces dependence on Asia. However, this willingness ends where the economic burden becomes too great. For the vision of an independent European chip industry to become reality, more than just good intentions are needed: clear political framework conditions, simplified approval processes, long-term investment security and the training of the necessary skilled workers. Only when all these factors work together can Europe achieve the technological sovereignty that will be decisive for its competitiveness in the future.
Source: it-daily.net
