How has electronics manufacturing changed in the EU by 2025? A brief overview of the current situation

In 2025, microelectronics manufacturing in the European Union (EU) is witnessing strong growth due to significant investments and strategic initiatives to strengthen Europe's position in the global semiconductor industry.

Key initiatives and investments:

• EU Chip Law: In 2023, the EU passed the Chip Law, which aims to increase Europe's share of global semiconductor production from the current 10 per cent to 20 per cent by 2030. This law provides for significant investment in chip research, development and manufacturing.
• Financial support for manufacturers: As part of the implementation of the Chip Law, the EU has allocated more than €8bn to 56 microelectronics manufacturing companies in 14 EU countries. These investments are expected to support an additional 65,000 jobs and €33bn in gross value added.
• Nine EU country initiatives: In March 2025, nine EU countries, including Italy, France, Germany, Spain and the Netherlands, came together to accelerate the development of the microelectronics industry. Their joint proposals, aimed at strengthening Europe's position in chip manufacturing, are scheduled to be presented in the summer of 2025.
• A call for more support: In March 2025, industry representatives called on the European Commission to develop an updated support programme known as Chips Act 2.0. This initiative aims to expand support not only for chip manufacturing, but also for chip development and the provision of the necessary materials and equipment.

Issues and Challenges:

Despite significant investments and initiatives, the current level of support may not be sufficient to reach the target of 20 per cent market share by 2030. Additional efforts are needed to expand funding and strengthen the entire microelectronics ecosystem in Europe, including PCB manufacturing and other key components.

Perspectives:

Ongoing investments and strategic initiatives are expected to lead to significant growth in microelectronics manufacturing in the EU, strengthening its position in the global market and reducing its dependence on Asian manufacturers. However, a co-ordinated approach and further increased support from both public and private actors will be required to achieve the set objectives.