Chips, or semiconductors, are the foundation of all electronic devices, driving advancements in energy efficiency, mobility, healthcare, security, and the ICT sector, including smart grids and efficient lighting. However, as demand for modern technology continues to rise, geopolitical shifts are reshaping the semiconductor supply chain, presenting a significant challenge for Europe. To remain competitive and secure its technological future, Europe needs to strengthen its semiconductor industry, ensuring resilience and advancing strategic autonomy.

This issue of the blog explores how geopolitics, strategic decision-making, and workforce demands shape the European semiconductor industry, while also addressing the challenge of balancing industrial growth with environmental sustainability.

The first article by Stephan Thome provides an overview of industrial policy developments in China and Taiwan, focusing on China’s perspective on Europe and the U.S. and the strategies it is pursuing.

Dorothee Hillrichs then examines the semiconductor industry itself, emphasizing the diversity of semiconductor types and their complex, globally distributed production—key factors that should be considered in policy discussions on semiconductor manufacturing locations.

Taking a more critical perspective, Julia Hess highlights the semiconductor industry’s substantial environmental and climate impact, raising important considerations for Europe’s role in advanced chip manufacturing.

Finally, Riccardo Bosticco discusses Europe’s struggle to keep pace with the U.S. and China in innovation, underscoring the need to address skills gaps and foster a culture that accelerates technological adoption.