A fresh independent assessment highlights fragile supply chains and power shortages that could undercut Europe\u2019s chip ambitions, raising urgency for unified policy and ally cooperation.<\/p>\n
The European chip sector is facing several significant risks: Chinese control of exports of critical materials and magnets, dependence on the United States in technology sectors, and the structural weakness of Europe\u2019s internal chip industry. Such conclusions are contained in an independent report prepared with the participation of the EU and the French Institut Montaigne.<\/p>\n
The report notes that Chinese restrictions on the export of critical materials and the risk of war in the Taiwan Strait pose serious threats to supply chains.<\/p>\n
Additional vulnerability is amplified by the EU\u2019s dependence on the United States in the technology sector, including software for chip design, and the likelihood that the United States could block exports of equipment for chip manufacturing by ASML, the most valuable European company.<\/p>\n
The U.S. Congress is discussing a law that would grant Washington the right to unilaterally apply export controls against allies and their companies.<\/p>\n
Although China still seems to be the greatest threat, dependence on Washington appears to be a much greater concern than during the second Trump administration.<\/p>\n
\u2013 Joris Teer<\/p>\n
In June, the European Commission proposed Chips Act 2.0, which is now to be discussed by the European Parliament. Part of the initiative aims to stimulate demand for chips manufactured in the EU, as well as to join the Pax Silica initiative \u2013 a cooperative effort by allies to ensure stable supply chains.<\/p>\n
According to experts, the EU\u2019s only real path lies in leveraging its existing strengths, notably ASML\u2019s production of chip-making equipment, to boost its position in global markets.<\/p>\n
The report also found that high energy prices, a deficit of private capital, and the decline of chip-using industries undermine the competitiveness of the European sector.<\/p>\n
In short, the lack of a coordinated strategy could pose risks for the sector\u2019s future, but with close cooperation with allies and strengthening the EU\u2019s internal advantages in the chip industry, it has a chance to remain viable and competitive.<\/p>\n","protected":false},"excerpt":{"rendered":"A fresh independent assessment highlights fragile supply chains and power shortages that could undercut Europe\u2019s chip ambitions, raising…\n","protected":false},"author":2,"featured_media":84398,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1925,43885,39,45016,45015,40,49,12167,45017],"class_list":["post-84397","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eu","tag-asml","tag-china-export-controls","tag-eu","tag-eu-chips","tag-eu-chips-asml-china-export-controls-us-tech-dependence-supply-chain-risk","tag-european-union","tag-news","tag-supply-chain-risk","tag-us-tech-dependence"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/84397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/comments?post=84397"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/84397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media\/84398"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media?parent=84397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/categories?post=84397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/tags?post=84397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}