Thomas Alsop
Research expert covering the global hardware industry
Semiconductors in Europe - statistics & facts
Europe is a key market within the global semiconductor industry, leading in research and development activities, advanced materials, and manufacturing equipment. Semiconductors form an important part of the European economy, with the strength of the European semiconductor industry also playing a significant role in the success of other sectors. A steady supply of chips is good news for industries that depend on semiconductors, with demand in Europe particularly high for industrial and automotive applications. However, Europe is keen to diversify its semiconductor industry, not just at the fabrication stage, but all parts of the supply chain.
The European Chips Act to boost Europe’s competitiveness and resilience
Demand for semiconductor chips is expected to double by 2030, reflecting the growing importance of such components for European industries. To address the challenges of meeting such a growth in semiconductor demand, the European Union set out plans in 2023 for 43 billion euros of public and private investment as it seeks to increase its market share by value in leading-edge semiconductors to 20 percent over the next decade. An obvious key to this will be the ability of Europe to attract companies to move or expand their chip making facilities out of the traditional strongholds in Asia and into Europe.Companies across the European semiconductor value chain to benefit
European players such as Infineon, NXP, and STMicroelectronics are recognized as leaders in semiconductor technologies, particularly for automotive and industrial applications, markets that are expected to have some of the highest growth rates in the coming years. Europe is also home to world-leading suppliers of semiconductor equipment, most notably ASML, the largest provider of lithography systems for the semiconductor industry globally. The company’s machines are involved in the production of advanced chips, used by the likes of Taiwan Semiconductor Manufacturing Company, the world’s largest semiconductor foundry.Semiconductor clusters drive innovation
Collaboration between European and international semiconductor companies is supported on the ground through alliances such as Silicon Europe, bringing together business clusters of companies involved in and around semiconductor technologies. Examples include Silicon Saxony in Germany, High Tech NL in the Netherlands, and Minalogic in France, clusters that are also home to global players such as GlobalFoundries and Intel.Europe's chip renaissance
The success of Europe's semiconductor strategy will depend on the region's ability to attract the necessary talent and secure higher levels of investment, all while navigating geopolitical tensions that could further impede the industry. However, building on the collaborative approaches already in place will help to spur greater innovation, enabling Europe to grow its chip independence, as well as support the region in its bid to become a competitive force across multiple semiconductor markets.
