EU Needs Reality Check on Ambitious Microchip Strategy

The European Union's ambitious plan to secure a 20% share of the global microchip market by 2030 is facing significant challenges. Despite the introduction of the EU Chips Act, which aimed to boost domestic semiconductor production following the COVID-19 pandemic, auditors warn that the target is unlikely to be met. The Act, implemented in 2023, has brought investment and momentum to the sector, but it may not be enough to enhance the EU's position in the global market. The European Court of Auditors emphasizes the need for a reality check, noting that the current pace of progress is far from meeting the required quadrupling of production capacity by 2030. As the EU evaluates its strategy, it must consider factors like intense global competition, energy costs, and raw material dependence. This analysis suggests that a revised strategy may be necessary to address these challenges effectively and ensure the EU remains competitive in the semiconductor industry.