The European Semiconductor Industry Association (ESIA) is calling on the European Union to introduce a long-term, coordinated industrial strategy led by a “chip ambassador” to align Europe’s semiconductor ambitions across industries. This role is seen as crucial to positioning Europe as a global leader in chip production, with the EU aiming for a 20% share of the global market by 2030. How in the recommendations As set out in the ESIA’s 2024-2029 political mandate, this strategy must include actions in research, manufacturing and talent development. ESIA represents key players such as NXP Semiconductors, Infineon, imec and Fraunhofer.
Why is this so important?
Global demand for semiconductors is increasing rapidly, driven by the rise of new technologies such as artificial intelligence, 5G networks and electric vehicles. Yet European semiconductor production lags behind that of key competitors such as the US and China.
The global semiconductor market is growing rapidly as the chips power key technologies such as smartphones, electric vehicles and renewable energy systems. The European Union has recognised the importance of semiconductors in the digital and green transition and has already set a target of reaching a 20% share of global chip production by 2030. However, according to the ESIA, further action is needed to make this vision a reality.
To lead these efforts, ESIA recommends the appointment of a “chip ambassador,” a dedicated official responsible for aligning Europe’s industrial ambitions with its semiconductor strategy. This official would coordinate efforts across industries, from automotive to renewable energy, to ensure the EU remains competitive in the global semiconductor race.
The ESIA’s call comes at a critical time. Global demand for semiconductors is increasing rapidly, driven by the rise of new technologies such as artificial intelligence, 5G networks and electric vehicles. Yet European semiconductor production currently lags behind key competitors such as the US and China. The ESIA argues that Europe needs a more unified and proactive approach to catch up.
Chips Act 2.0
While the EU Chip Act was an important step forward, ESIA is pushing for a “Chips Act 2.0” to further improve the European semiconductor ecosystem. This updated policy should fill gaps in the original framework, such as speeding up the approval process for semiconductor manufacturing facilities. The current delays, says ESIA, put European companies at a disadvantage when competing with firms from other regions.
The ESIA also highlights the need for a future-proof state aid regime to support the sector. European semiconductor companies face global competition and need the same level of support that their competitors in the US and Asia receive from their respective governments.
A smart policy approach to competitiveness
One of the ESIA’s key recommendations is the introduction of a Europe-wide “Competitiveness Check”. This would ensure that all policies, whether technological, environmental or trade-related, are aligned with the overarching goal of boosting the European semiconductor industry. The ESIA warns that conflicting policies and excessive administrative requirements could slow growth and prevent Europe from reaching its 2030 target.
To implement this holistic policy strategy, ESIA advocates the creation of a Processor and Semiconductor Technologies Alliance. This initiative would involve leading companies in the industry and would be modelled on the work of the European Semiconductor Committee established under the EU Chip Law.
Need for skilled workers
A key challenge for the European semiconductor industry is the lack of skilled workers. ESIA estimates that Europe will need between 10,000 and 15,000 new skilled workers to fill the semiconductor manufacturing facilities to be built in the coming years. More generally, the European semiconductor ecosystem could face a shortage of up to 350,000 workers by 2030.
To address this problem, ESIA calls for an EU-wide education strategy to attract talent to STEM subjects. These efforts should start at primary school and continue through to university, with a particular focus on apprenticeships and dual study programmes. ESIA also highlights the need for dedicated semiconductor training centres in Europe, as many talents are forced to go abroad for specialised training.
The ESIA recommendations are of key importance for the European semiconductor industry. As global competition becomes increasingly tough, Europe must act quickly to secure its position in the market. With a coordinated strategy supported by smart policy measures and a solid talent pipeline, the EU can achieve its ambitious goal of becoming a world leader in semiconductor production by 2030.
Photonics and ASML
Jose Pozo, Chief Technology Officer at Optica and a renowned visionary in the photonics industry, shares ESIA’s call to keep Europe competitive in the fast-moving global race for dominance in the semiconductor industry. In addition, it is essential for the photonics industry to stay on top of these developments,” he writes on Linkedin. But his focus is not only on photonics. Pozo is also concerned about recent moves in the Netherlands: “As the Dutch government, under pressure from the US, considers further restrictions on the export of chip manufacturing machines to China, there are growing concerns that ASML (and its suppliers from Brainport Eindhoven) could lose one of its biggest markets.”
