Europe needs a better local chip production Strategic Agenda

[paxmao]

If Taiwan is blockaded or otherwise the trade disrupted, Europe will struggle with chips supplies vital to all industries.

Why not plan ahead? It takes many years to get this type of industry rolling, so why not now?

[franky1]

yawn.. already in the plan from last year.. your just a lil late in your research.. but good news for you. theres this thing, its called google. it can take seconds to catch you up.. try it. you will be surprised

took 20 seconds to get these results and quickly read them to see how EU is already planning on chips

https://www.czechtradeoffices.com/in/news/czech-republic-to-lead-european-computer-processor-development
https://www.nextplatform.com/2025/03/10/europe-takes-another-whack-at-homegrown-compute-engines/

there are more results.. have fun learning/catching up

[Zlantann]

If Taiwan is blockaded or otherwise the trade disrupted, Europe will struggle with chips supplies vital to all industries.

Why not plan ahead? It takes many years to get this type of industry rolling, so why not now?

With the way the global economy is turning out, every country or regional bloc would have to be prepared for uncertainties. The tariff war between the US and China is raging; we cannot predict the next moves of these two super economies. The years of totally relying on another country for essential supplies are over. Trump is also setting a precedent on economic bullying and sabotage through tariff. From the links @franky1 provided it is obvious that the EU is already taking steps to become self-reliant in chip production. I suggest that the Union should hasten up because the future is unpredictable..

[Macro Exchange]

If Taiwan is blockaded or otherwise the trade disrupted, Europe will struggle with chips supplies vital to all industries.

Why not plan ahead? It takes many years to get this type of industry rolling, so why not now?

With the way the global economy is turning out, every country or regional bloc would have to be prepared for uncertainties. The tariff war between the US and China is raging; we cannot predict the next moves of these two super economies. The years of totally relying on another country for essential supplies are over. Trump is also setting a precedent on economic bullying and sabotage through tariff. From the links @franky1 provided it is obvious that the EU is already taking steps to become self-reliant in chip production. I suggest that the Union should hasten up because the future is unpredictable..

The way things are going, it’s kinda clear that no one can afford to fully depend on others anymore — especially for stuff as critical as chips. The US-China tension is just one piece of it, but it shows how fast things can shift. One tweet, one move, and supply chains get messy...

The EU's making moves, yeah, but let’s be real — these projects take time, and time’s not exactly on our side. Better to rush a bit now than panic later.

What do you think is the EU moving fast enough, or are we still sleeping on this? 

[Accardo]

It was all a surprise how America took back TSMC to operate and build plants in the US very simply. EU catching up on this chip race will be tough since the company is the largest chip manufacturer in the world with a market share of 50%, which is close to what United States had in the 1970s when they dominated the international market by 70 percent. Exactly what Trump wanted with the tariffs. He wants US to regain its position in the chip production industry.

[paxmao]

It was all a surprise how America took back TSMC to operate and build plants in the US very simply. EU catching up on this chip race will be tough since the company is the largest chip manufacturer in the world with a market share of 50%, which is close to what United States had in the 1970s when they dominated the international market by 70 percent. Exactly what Trump wanted with the tariffs. He wants US to regain its position in the chip production industry.

Not that surprising to be honest, Trump probably offered a sweet deal with plenty of tax breaks and ... there you go. The guy from TSMC should be perfectly ok with duplicating production, getting to a beter geolocation  in terms of safety and making plenty of money in the way.

I think Europe should do ... the same to be honest. And to create datacenters that can compete with Microsoft, AWS and Google Cloud. It is clear EU is far too dependent on the US who is no longer a reliable partner.

[franky1]

currently china this past week are seeing alot of cargo shipping containers being left at chinese ports where US distributors are simply cancelling orders. china is already calling around other countries seeing which countries want cheap goods. because the longer the shipping containers stay at chinese ports the longer the distributors are hit with penalties(demurrage charge $300 a day)

for electronics, like chips, they are already eyeing up europe as possible destination to dump the goods on, disrupting EU's supply market by flooding them with more goods than needed,

china are able to do this because businesses in china were making hefty profit with US last year so suppliers can cut the retail/wholesale prices, plus whilst containers are filling the ports it stops the flow of other containers which could have gotten through if the ports were not already full.. so the chinese government are willing to add subsidies to willing destinations to reduce the average retail/wholesale costs further,
and because the longer shipping containers stay at ports the more penalties are so its cheaper for suppliers to sell at cost/loss now than just wait out a trade deal, which can cost the distributors alot in demurrage charges

yep china cant just wait out trump, even a week is costing suppliers/distributors in china, let alone the next 3 months

EU are reluctant to take on these cheap chips and electronics because if their businesses and retailers become reliant on it and consumers become too expectant of it, then it just leads to the trap the US is trying to escape in regards to domestic sustainability/chinese reliance
if EU gets too used to cheap chinese goods it then kills off the demand for EU production

https://www.youtube.com/watch?v=yScvD_WWm3Q

anyways i gotta laugh that people think the EU is chip-less and is now rushing only due to trump this month..
seems the comedians of this forum cant even research
take this for instance
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/europe-fit-digital-age/european-chips-act_en

eu have been planning to expand EU chip making for 2 years ALREADY.. so they were expanding even before the trump stuff
and EU are rejecting chinese cheap goods to avoid dependency on china.. so it looks like they are already ahead of the game and the idiotic comedians of this forum just have not even bothered to look passed their favourite media's clickbait fear mongering

yep thats right certain people on this forum dont realise media like to make stories of exaggerated fear for clickbait, rather then do real investigative journalism
so harsh lesson these idiot comedians of the forum need to learn is to do their own research and when they see their favoured media has just clickbaited them into fear, its time to take their favourite media off their subscription/notifications and find better sources

start a revolution. when you see obvious clickbait. dont fall into the trap and click it. instead block it. then media wont get the click-through rate it wants from obvious clickbait. and maybe they might then be tempted to actually write real investigative journalism pieces to win reader numbers, better click-through rate

[montaga]

It is absolut amazing we are 16 year in and people still don't unterstand Bitcoin.

[Macro Exchange]

It is absolut amazing we are 16 year in and people still don't unterstand Bitcoin.

Part of the issue is not just misunderstanding Bitcoin itself, but also the broader market dynamics and the shift in how we define value and ownership. In many countries, most people don’t even invest in basic things like stocks — so when it comes to cryptoBTC.... 

For mass adoption to happen, we need more than just innovation — we need education, regulatory clarity, and a shift in mindset around personal finance.

[paxmao]

currently china this past week are seeing alot of cargo shipping containers being left at chinese ports where US distributors are simply cancelling orders. china is already calling around other countries seeing which countries want cheap goods. because the longer the shipping containers stay at chinese ports the longer the distributors are hit with penalties(demurrage charge $300 a day)
[...]

Franky... Trump just lifted many of the tariffs ... think he left at 20% on these. COuld have done the same negotiation without any chaos.

]https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url][/url]

This is not a win win, even if Trump gets any deal done, this is always a loose loose. The US consumers will pay the extra of either a tariffed product or a local inefficient produce.

The companies will face a number of issues with getting financing - as there is no certainty any further administration will keep on the same deals. No... economy does not like chaos.

Europe is probably going to wake up to the fact that the voters in the US - like you Franky - have only a very basic grasp of reality.

[coinhelper]

They have ASML (in the Netherland), that's pretty strategic. (Most of the technology used by the Taiwanese semiconductor company relies on the 3D silicone printing done by ASML).

[franky1]

Franky... Trump just lifted many of the tariffs ... think he left at 20% on these. COuld have done the same negotiation without any chaos.

https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url=http://]]https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url=http://]]]https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url=http://]]]]https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url=http://]]]]]https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url]]]]]]]https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-team-sow-confusion-on-reported-exemptions-for-cell-phones-electronics-191201399.html[url][/url]

This is not a win win, even if Trump gets any deal done, this is always a loose loose. The US consumers will pay the extra of either a tariffed product or a local inefficient produce.

The companies will face a number of issues with getting financing - as there is no certainty any further administration will keep on the same deals. No... economy does not like chaos.

Europe is probably going to wake up to the fact that the voters in the US - like you Franky - have only a very basic grasp of reality.

you really are dumber with each post

trump gave a temporary reprieve on retail ready chips at lowered tariff. FOR A MONTH
this gives extra time for manufacturers to move ASEMBLY phase of chip making to better trade zones
then they will assemble chips in better regions but using raw materials(silica ingots tariff free) from other countries

WAKE UP
this is not where no chips will be made for 2-5 years like you keep spouting as fear story
this is not where EU chips are going to cost alot due to china retail ready chip tariffs

realise that assembling parts from other countries into a final product in destination country then doesnt charge tariff on final product because its made in destination country

just do the research. i told you this weeks ago. i dont care that you dont beleive me on faith. DO THE RESEARCH and work it out for yourself
stop relying on your click bait media that lied to you months ago.

[paxmao]

They have ASML (in the Netherland), that's pretty strategic. (Most of the technology used by the Taiwanese semiconductor company relies on the 3D silicone printing done by ASML).

It is a good thing certainly, as the chip building facilities in the end need to use their tech. However Europe should take a further step forward to bring at least some level of printing ability to the continent. Maybe you do not need to have te latest 3 nm chips, you could perfectly do for most applications with a bigger print and still have some resiliency.

I reckon this would not be as competitive as having TSMC chips, but it is vastly useful for many applications and provides a level of strategic independence.

[NotFuzzyWarm]

They have ASML (in the Netherland), that's pretty strategic. (Most of the technology used by the Taiwanese semiconductor company relies on the 3D silicone printing done by ASML).

A. It is not '3D silicone printing'. The EUV (Extreme Ultra Violet) lithography process used is not '3D printing' - it is a 2D photo process used to etch patterns onto wafers made of pure  silicon (Si) as in the element - not silicone which are materials that incorporate Si as part of their chemical makeup.

B. All that matters is ASML is a Western owned corporation - aside from not being located in Asia, where their facilities producing the EUV photo lithography stepper systems are located is pretty irrelevant. Their operations being located in Europe does not give Europe any special benefits when it comes to chip building other than lower shipping cost for the dozens of shipping containers worth of equipment needed for each EUV system.

C. It must be pointed out that over 90% of all chips used in the world do NOT require cutting edge EUV tech because they use gates that are larger than 5nm and lower where EUV is a requirement. Most range from the high double-digit nm size up to double and even triple-digit micron size. These chips are used in countless devices, eg, car electronics, remote controls, AV systems, IoT & edge-computing devices, interface chips, LED lighting, etc. Equipment for producing those sizes is very cheap and not particularly difficult to build & run. The problem is that those chips are priced as mass produced commodities (dirt cheap) and very few Western companies are interested in making them in their countries because labor costs are too high.

[Reynaldo]

Europeans are sleeping on the AI market while the rest of the world is feasting on gains. They've got all the ingredients  top tier universities, technical talent, and regulatory framework  but they're moving like they're stuck in dial up era ngl. EU needs to stop overthinking and start building.

[coinhelper]

Europeans are sleeping on the AI market while the rest of the world is feasting on gains. They've got all the ingredients  top tier universities, technical talent, and regulatory framework  but they're moving like they're stuck in dial up era ngl. EU needs to stop overthinking and start building.

I think there's the issue of large private corporation's in the US that function in a multinational environment buying up parents and research as it starts to turn a corner and show it's productive. This is a very common practice in medicine so I can't imagine it not being common in tech too.

It would be down to institutions (universities, government research and private researchers) to not sell their property as soon as they become valuable or for the EU and national governments to make an R&D fund that buys these - but they'd be competing with large us multinational organisations that have highly efficient and competitive models because they fail and go bankrupt if they don't.


As far as I'm aware, Philips (from the Netherlands) were a large early investor in TSMC - who sold up the shares they bought early on to invest in healthcare related products...

[paxmao]

They have ASML (in the Netherland), that's pretty strategic. (Most of the technology used by the Taiwanese semiconductor company relies on the 3D silicone printing done by ASML).

A. It is not '3D silicone printing'. The EUV (Extreme Ultra Violet) lithography process used is not '3D printing' - it is a 2D photo process used to etch patterns onto wafers made of pure  silicon (Si) as in the element - not silicone which are materials that incorporate Si as part of their chemical makeup.

B. All that matters is ASML is a Western owned corporation - aside from not being located in Asia, where their facilities producing the EUV photo lithography stepper systems are located is pretty irrelevant. Their operations being located in Europe does not give Europe any special benefits when it comes to chip building other than lower shipping cost for the dozens of shipping containers worth of equipment needed for each EUV system.

C. It must be pointed out that over 90% of all chips used in the world do NOT require cutting edge EUV tech because they use gates that are larger than 5nm and lower where EUV is a requirement. Most range from the high double-digit nm size up to double and even triple-digit micron size. These chips are used in countless devices, eg, car electronics, remote controls, AV systems, IoT & edge-computing devices, interface chips, LED lighting, etc. Equipment for producing those sizes is very cheap and not particularly difficult to build & run. The problem is that those chips are priced as mass produced commodities (dirt cheap) and very few Western companies are interested in making them in their countries because labor costs are too high.

The details are important, but in the end those few chips that do require, or better said, generate a distinct competitivy advantage by using the smaller calibers, are the ones that do provide an advantage on many modern weapons systems and make AI cheaper and efficient.

Of course, nobody cares about those when making a washing machine - but anyone can make a washing machine, not so much the chips required for an air defence missile or other that do realy in maximum processing speed.

[NotFuzzyWarm]

Of course, nobody cares about those when making a washing machine - but anyone can make a washing machine, not so much the chips required for an air defence missile or other that do realy in maximum processing speed.

Until they can't make the washer, TV, phone, car, etc. because for whatever reason the needed commodity chips are not available. A few years ago the auto industry ran into that. The chip shortage lasted several months delaying and for a few models even stopping vehicle production due to lack of parts that go into ECM's.

FYI - most military systems do NOT use chips that are anywhere close to being cutting edge. Physical durability, reliability and fairly low cost are the primary drivers and that puts them squarely in the higher size nodes. Even though I'm now retired I still subscribe to several defense industry emags and cannot recall even once seeing an article or ad touting anything using gates smaller than 16nm.

Along that line, for that very reason I for one have always found the story given for restricting sales of ASML gear to China (military usage) to be greatly over simplified and untrue. Yeah fixed ground based radar sites could benefit from it but to me the main concern has always been one of purely economic advantage