As the doors close on Electronica 2024 in Munich, the buzz around Europe’s semiconductor ambitions lingers. The EU is on a mission to bolster its electronics manufacturing resilience, and the EU Chips Act is its roadmap to a future where Europe isn’t just a consumer of chips, but a global powerhouse in their production.
This isn’t some pie-in-the-sky dream. The EU is injecting a whopping €43 billion into the European semiconductor industry, aiming to double its global market share to 20% by 2030. It’s a bold move, considering Europe currently holds a mere 9% of the market, a stark contrast to the 44% it commanded back in 1990. But as EE Times aptly puts it, the Chips Act is about more than just market share; it’s about addressing “semiconductor shortages by reducing dependency on non-European suppliers” and securing “Europe’s economic strength and security.”
Leading the charge is the European Semiconductor Manufacturing Company (ESMC), a joint venture that reads like a who’s who of the semiconductor world: TSMC, Bosch, Infineon, and NXP. Their new 300-mm fab in Dresden, Germany, is a beacon of Europe’s ambitions. Set to churn out 40,000 wafers a month using cutting-edge FinFET technology, this fab, as highlighted by EE Times, will be “instrumental in invigorating Europe’s semiconductor manufacturing ecosystem.”
But it’s not just about throwing money at shiny new fabs. The EU Chips Act is a multi-pronged attack, aiming to cultivate a fertile ground for innovation across the continent. The European Commission is weaving a network of 27 Chips Competence Centres, strategically positioned across 24 member states and Norway. With an investment exceeding €170 million, these centres, as reported by Innovations Network, are designed to “enhance technical expertise and skills development,” providing vital support for SMEs and start-ups looking to make their mark in the semiconductor arena.
Europe is taking inspiration from the foundry model, a strategy that has seen companies like GlobalFoundries and STMicroelectronics join forces to build new fabs in France. EE Times explains the allure of this model, highlighting its “strong manufacturing focus and specialisation” as key ingredients for success.
However, the path to semiconductor sovereignty is paved with challenges. Intel, despite its grand ambitions to become a major foundry player, has hit a few roadblocks, delaying its €30 billion fab project in Germany and prompting a reassessment of its strategy. And as EE Times points out, Europe faces a looming skills shortage, a hurdle it must overcome to secure the long-term viability of its semiconductor industry.
The European Chips Skills Academy is waving a red flag, predicting a shortfall of over 75,000 technical jobs by 2030. Their report, covered by New Electronics, stresses the urgency of attracting more STEM graduates into the semiconductor sector, calling for “strategic communications campaigns” to showcase the industry’s exciting potential.
Europe’s ambitions extend beyond the realm of traditional silicon. The Chips Joint Undertaking is placing its bets on photonics, a technology that harnesses the power of light instead of electrons, offering tantalising advantages in speed and power consumption. With a €380 million investment in pilot plants for photonic chips, the Chips JU is betting on a future where photonics plays a pivotal role in a low-carbon world.
But the EU Chips Act isn’t just about technology; it’s about fostering a collaborative ecosystem. Unlike the more protectionist approach of the US Chips Act, Europe is emphasising cooperation, both within the EU and with international partners. This collaborative spirit is evident in the joint ventures and partnerships that are shaping Europe’s semiconductor landscape.
The EU Chips Act is a bold declaration, a signal that Europe is determined to reclaim its place at the forefront of the global semiconductor industry. It’s a long game, requiring sustained investment, a skilled workforce, and an unwavering commitment to innovation. But if successful, it could transform Europe into a global semiconductor powerhouse, securing its economic future and technological sovereignty.
