IndustriAll Europe calls for urgent action as the EU is falling short of its chip production goals. Underinvestment have led to major job losses, including 2.800 cuts at STMicroelectronics. Unions demand investment and protection of workers.
The European Union is falling significantly short of its ambitions to become a stronger player in the global semiconductor market, according to a recent report by the EU’s Court of Auditors. Despite the 2022 launch of the EU Chips Act, which aimed to boost Europe’s share of global semiconductor production to 20% by 2030, and despite the EU’s Digital Decade Strategy target of doubling the EU’s share of global semiconductor production by 2030, the EU remains well off track. This echoes concerns raised in a 2024 study by Syndex for industriAll Europe.
The Chips Act promised a €86 billion investment to secure Europe’s supply of microchips — essential components in everything from smartphones to cars — and reduce reliance on foreign producers. This ambition became even more urgent following the global chip shortages during the COVID-19 pandemic, which exposed vulnerabilities in Europe’s supply chains.
However, the new audit reveals that the EU’s efforts are fragmented and underpowered compared to global competitors. While global semiconductor investments are projected to reach €405 billion, Europe’s €86 billion commitment pales in comparison. The report highlights several systemic challenges including high energy prices and geopolitical tensions, problems with supply chains and access to raw materials, skilled labour shortages, and environmental concerns.
The auditors also point to structural weaknesses in the industry itself. Many European manufacturers have retreated from leading-edge chip production, focusing instead on niche areas. This strategic shift has left Europe increasingly dependent on non-EU suppliers for advanced semiconductors.
The consequences are already being felt on the ground. Franco-Italian chipmaker STMicroelectronics recently announced 2,800 job cuts, the majority in Europe.
“To reach its 20% market share goal, the EU would need to quadruple its production capacity by 2030. That says it all,” said Isabelle Barthès, Deputy General Secretary of industriAll Europe.
“The EU must massively step up investments, particularly in skills and quality jobs. Strategic autonomy is vital, but we need to strike a balance between autonomy and interdependence. A global ‘chip war’ that would deepen global tensions must be avoided.”
“As trade unions, we must ensure public funds benefit workers and regions and not be used to cover for poor corporate or political decision-making”, said Isabelle Barthès.