Leading-edge semiconductors will play a pivotal role for key European industries and will foster Europe's competitive edge. In the face of surging demand, the EU cannot miss this opportunity.
The stakes are high. An investment of this scale and ambition isn’t about the next two, five or even ten years. Europe is faced with rapidly increasing global competition, particularly from major manufacturing powerhouses like Taiwan and South Korea. These countries represent a combined 58% of global manufacturing, which has left the EU in the backseat on production. Failure to act on these ambitions is not an option. Forecasts show that the EU will need to focus on leading-edge technologies for the production of the latest generation of chips in order to guarantee its competitive edge in the long-term.
Europe’s Consumption of Leading-Edge Semiconductors is Set to Increase Exponentially Over the Coming Decade
European demand for leading-edge semiconductors is expected to grow dramatically in the coming years. Management consultancy Kearney has produced a report examining future demand for leading-edge semiconductors in Europe and their key role for strategic industries in Europe. The report shows that the consumption of leading-edge chips will grow 15% every year, while demand for mature semiconductor technologies will remain mostly flat (3%). The share of leading-edge chips in the EU will grow from 19% in 2020 to 43% in 2030; it is a market that will be worth approximately €34 billion.
European Industry and the Future of Leading-Edge Semiconductors
Over the coming years, European industry will increasingly rely on leading-edge semiconductor chips to support emerging and innovative infrastructures, such as 5G/6G and smart electricity grids. Leading-edge semiconductors also represent a key resource in the pursuit of European technological sovereignty. Emerging technologies like Artificial Intelligence and quantum computing require leading-edge chips.
The demand for cutting-edge chips is inextricably linked to competitive innovation. Innovations in semiconductor technologies depend on leading-edge engineering and manufacturing. The EU must re-establish the link between engineering and manufacturing, including local leading-edge foundry facilities.
Intel supports European plans to ensure leading-edge semiconductor production is done in Europe, and this is why we are investing in the European semiconductor ecosystem – through R&D investments, production and packaging. We look forward to playing our part in the EU’s ambition to double its share of global semiconductor manufacturing to 20% of worldwide manufacturing by 2030. Read more about the EU’s plans to get there through the Chips Act: European Chips Act | European Commission (europa.eu).