Without chips, there’s no industrial autonomy and no leadership in clean tech! How can Europe avoid falling behind?

AGENDA

For Europe, the establishment of a robust semiconductor ecosystem is a vital economic priority, specifically when it comes to driving innovation in clean tech. In an era of increasing geopolitical upheaval and a growing weaponisation of trade policy, however, the European semiconductor industry faces multiple challenges that go above and beyond the scope of the original 2023 Chips Act. Semiconductors are not only an essential building block in all electronic products - they are key to industrial competitiveness and the driving element in ongoing global industrial competition.

To ensure clean tech and digitalisation remain a driving force for job creation and prosperity, Europe needs to act faster and more strategically, at home and at the global level. The EU and its Member States have to make tough decisions on the type of semiconductors, the architecture for a common European supply chain, the innovation enablers needed and the financial resources it is prepared to invest. At the same time, from an outside perspective, it needs to ensure access to various components in the value chain, starting with raw materials, while navigating potential conflicts between the Trump administration and China.

The Conference - jointly organised by FES Future of Work and  FES Just Climate has brought together experts from EU institutions, trade unions, think tanks and civil society as well as representatives from the business sector.

Knut Dethlefsen, Director of FES Future of Work, welcomed the speakers and participants, emphasising in his opening remarks that semiconductors are crucial to Europe’s global competitiveness and its role in the global race for technological leadership.

In the keynote speech, Stephan Thome, a writer, sinologist and philosopher, highlighted the increasing pressure Taiwan faced from China and emphasized the island’s key role in the global semiconductor industry. His presentation was based on his recently published book - Narrow Waters, Dangerous Currents / Schmales Gewässer, gefährliche Strömung.

The panel discussion, moderated by Shada Islam, provided insights into the multifaceted nature of the semiconductor industry, emphasizing various challenges—from investment hurdles and the role of businesses in shaping the industry's future to the disconnect between institutions and on-the-ground realities.

Isabelle Barthès emphasised that Europe urgently needed investment in the semiconductor industry, but warned that we had to remain cautious about the associated risks—particularly the threat of overcapacity. The key question, Isabelle Barthès argued, was how to ensure that such investment delivered tangible, long-term benefits for Europe. This included addressing where the funding would come from and how to design effective public-private partnerships. These partnerships had to be founded on clear conditions—such as ensuring job creation and embedding a strong commitment to sustainability.

Tim Rühlig  pointed out that the political and industrial spheres operate with fundamentally different mindsets and logics, often leading to clashes—especially in the context of initiatives like the Chips Act—raising the question of how these differences can be reconciled; moreover, amid growing uncertainty with China, discussions around strategic autonomy must also acknowledge the deep integration of our economy within the global system, where complete independence is neither realistic nor desirable.

Janine Dobelmann shared an invaluable perspective from within the industry—one that's often overlooked in broader debates and political strategies—highlighting that the key challenges we face include ongoing chip shortages due to a fragmented supply chain, the inherent complexity of the semiconductor sector, and a strategic misalignment marked by a tendency to overlook our existing strengths; ultimately, Janine Dobelmann emphasized that Europe’s technology gap calls for stronger leadership and a more coherent, forward-looking strategy.

​Tiemo Wölken, a Member of the European Parliament (MEP) from the Socialists & Democrats group, has played a key role in shaping the European Chips Act. He has stressed the need to strengthen Europe’s semiconductor industry and reduce reliance on external suppliers. Highlighting the EuroStack initiative, he emphasized the risks of digital dependency and the need to develop homegrown infrastructure to ensure resilience and competitiveness.