Microprocessors: Europe “lagging behind” despite the “Chips Act”

Brussels – The goal, set two years ago, of increasing semiconductor manufacturing in the EU from 10% to 20% of global production will not be achieved by 2030, according to the European Court of Auditors.

The European Commission presented a plan in 2022 called the “Chips Act” to unlock 43 billion in public funds, and as much in private financing, with the ambition of reaching 20% of global production by value.

This was in response to the shock caused by the Covid-19 pandemic. The semiconductor shortage had forced the shutdown of many car factories and revealed the vulnerabilities of a Europe dependent on Taiwan and Korea for essential components to its economy.

The Court cites the latest forecasts from the Commission, which indicate that despite the significant expected increase in the EU’s production capacity, its share by value in a rapidly growing market will only increase slightly, from 9.8% in 2022 to 11.7% by 2030.

“We are lagging behind,” said Annemie Turtelboom, a member of the Court responsible for the audit, calling on the Commission to “review its long-term strategy to better align with market reality.” (April 28, 2025)