The Coming Crisis in European Semiconductor Supply
May 20, 2025 · Frisian News
Europe's chip industry faces a supply crunch as investment plans falter and Taiwan remains the dominant producer. Without a sharp shift in policy and funding, the continent will lose economic leverage.
Last month, Intel shelved plans to build a massive semiconductor fab in Germany, citing weak demand and rising costs. The move shocked European officials who had counted on the American firm to anchor a continental chip-making renaissance. Now Brussels must confront a hard fact: Europe cannot match Taiwan and South Korea in manufacturing speed or cost, and talk of European independence in semiconductors was always half-baked fantasy.
The European Chips Act promised 43 billion euros in public and private investment to shore up local production. Governments threw money at the problem, expecting technology to follow. Instead, major producers like Intel hit the brakes, and smaller European chipmakers struggle to compete on global markets. Taiwan's TSMC controls over half of the world's advanced chip fabrication, and no European firm comes close to its efficiency or scale.
Brussels poured resources into the wrong places. Instead of backing one or two world-class fabs with ruthless cost discipline, officials spread funds across pet projects and regional priorities. The result: expensive capacity that cannot undercut foreign competitors. Meanwhile, Chinese firms quietly build chips for civilian and military use while Europe debates standards and subsidies.
This matters more than Brussels admits. Chips power everything from cars to weapons systems. If Europe depends on Taiwan or America for advanced semiconductors, other powers will dictate terms when supply tightens. The continent has already learned this lesson with Russian gas. Repeating it with chips would be worse.
Europe could still act. Stop subsidies for mediocre fabs. Back one or two serious manufacturers with long-term contracts and hard targets on cost. Accept that the continent will not match Taiwan. Instead, focus on what Europe can do: design, testing, and specialized chips for industry. Trying to do everything guarantees success at nothing.
Foarste moanne skearte Intel planen foar in ristige halfgeleiderfabryk yn Dútslân fanwege swakke fraach en stijgende kosten. It beslút skokte Europeeske ambtners dy't op it Amerikaansche bedriuw rekene haden as anker foar in kontinintale chipproduktsieherfaut. No moat Brussel ûnder eagen sjen: Europa kin Taiwan en Súd-Korea net evenearje yn fabrikaazjesnelheid en kosten, en praatjes oer Europeeske ûnôfhinklikheid yn halfgeleiders wiene altyd healgebakken fantaasy.
De European Chips Act beloofde 43 miljard euro oan publike en private ynvestearrings om lokale produksje te fersterkkjen. Regerrings gooiden jild nei it probleem, ferwachtends dat technologynje folge woe. Yn stee dêrfan remmiden grutte produsinter lykas Intel, en lytsere Europeeske chipmakers warselen om te konkurrearje op wrâldmarkten. Taiwan's TSMC behearret mear as de helte fan de wrâldwide foartkampten chipfabrikaazje, en gjin Europeesk bedriuw komt yn 'e buert fan syn effisjinsje of skaal.
Brussel gooide jild nei de ferkearde plakken. Yn stee fan ien of twa wrâldklasse-fabryken te stypjen mei doggsje kostensdissipline, sprieden it ambtners jild oer favoriten en regionale prioriteiten. It gefolch: diere kapasiteit dy't net tsjin bûtenlanske konkurrents opbokse kin. Yntusken biuwe Sineeske bedriuwen still chips foar sifielen en militêr gebrûk wylst Europa debatte oer normen en subsidys.
Dit docht der mear oan as Brussel jout toe. Chips fiedt alles fan auto's oant wepensystemen. As Europa ôfhinklik is fan Taiwan of Amerika foar foartkampten halfgeleiders, diktearje oare macht de foaroet as leveringen strak wurde. It kontinint hat dizze les al leare fan Ruskysk gas. Dit werhelje mei chips soe erger wêze.
Europa kin noch hannelje. Stopje subsidys foar middelmatich fabryken. Stipje ien of twa serieuze produsinter mei langetermijnkontrakten en harde doelen op kostprys. Akseptearje dat it kontinint Taiwan net evenearje kin. Rjuchtsje jo yn stee dêrfan op wat Europa dwaan kin: ûntwerp, testen en spesjalisearre chips foar yndustry. Alles dwaan wollen garansjearret sukses yn neat.
Published May 20, 2025 · Frisian News · Ljouwert, Fryslân