European Resilience in Global Semiconductor Supply Chains
This workshop report written by several CSS experts summarizes the discussions and insights from a workshop organized by the Center for Security Studies. The event convened international experts in technology and economic security, alongside public and private sector practitioners, to assess risks and explore strategies for enhancing European resilience in global semiconductor supply chains.
In four panels the Policy Workshop tackled three main questions facing European governments and semiconductor corporations:
- What are the main trends, developments, and strategies in the geopolitics of semiconductor competition?
- What are the key opportunities and risks arising from the EU’s Competitiveness Strategy for European governments and corporations in the global semiconductor supply chain?
- How can European governments and corporations better strategize to enhance resilience in the volatile global semiconductor supply chain?
Key Points Panel 1: Challenges in Europe’s Pursuit of Technological Resilience
- Regulation vs. Innovation – The EU’s heavy reliance on regulation stifles innovation, hindering global competitiveness.
- Ineffective Subsidies – Subsidies have failed to boost global competitiveness; tax credits and targeted industrial support may be more effective.
- Export Control Risks – EU export controls hurt domestic firms without significantly impacting competitors like China, lacking mitigating measures.
Key Points Panel 3: The Geopolitics of Technological Competition
- US-China Tech Rivalry – Supply chain bifurcation is accelerating, with uncertain long-term impacts of policies like the US Chips Act, while China continues advancing despite containment efforts.
- Innovation Decentralization – Export controls target specific technologies but fail to curb broader innovation, enabling China to develop alternatives.
- Taiwan’s Semiconductor Role – Taiwan remains key to global semiconductor production, but geopolitical risks could threaten supply chain stability.
Key Points Panel 2: Changing European Dependencies
- Optimizing Incentives & Investments – Better coordination of subsidies and incentives is crucial; free-trade and tax-free zones could enhance competitiveness.
- Semiconductor Challenges – Europe remains dependent on Asian supply chains; strengthening packaging, assembly, and other gaps is key to reducing vulnerabilities.
- Talent & Strategic Investments – Boosting talent development is essential, while initiatives like the European Chips Act 2.0 should prioritize security, sustainability, and strategic stockpiling.
- Stronger Coordination & Supply Chains – Enhanced collaboration among firms, policymakers, and academia is vital for supply chain resilience.
Key Points Panel 4: European Corporations’ Strategies for Resilience
- From Efficiency to Resilience – Geopolitical tensions and regulatory burdens are pushing European firms to prioritize resilience over efficiency.
- US Export Controls & Regulatory Pressures – Expanding US export controls complicate global trade, with Swiss companies facing unique challenges.
- Southeast Asia’s Strategic Role – As US-China decoupling continues, Southeast Asia emerges as a key hub for European diversification.
- Rising Energy Demands – New computing architectures offer efficiency gains but require major technological adaptation.
- Complex challenges – Geopolitical and regulatory challenges, while complex, are also spurring technological advancements.
In the end Myriam Dunn Cavelty, Michiel Foulon, Gorana Grgić, Jascha Heynen and Névine Schepers summarize, that Europe’s future competitiveness will depend on its ability to foster innovation, streamline regulations, and reduce dependencies in key sectors.
To read more on the various panels you can now download the CSS workshop report.