EU's Microchip Market Goal in Jeopardy

The European Court of Auditors (ECA) has issued a stark warning: the European Union is lagging in the global microchip competition. The ambitious target to secure 20% of the global microchip market by 2030 now seems increasingly out of reach. Factors such as scarce raw materials, soaring energy prices, and escalating geopolitical tensions are exacerbating the challenge.

Challenges and Criticisms

Despite the introduction of the 2022 EU Chips Act designed to invigorate the sector, the ECA remains skeptical about the likelihood of significant advancements. "The EU urgently needs a reality check in its strategy for the microchips sector," stated Annemie Turtelboom, the ECA Member responsible for the audit. She emphasized the rapid evolution of the field and the intense geopolitical competition, noting the current progress is insufficient to meet the set ambitions.

A Call for Action

Turtelboom highlighted the aspirational nature of the 20% target, pointing out that achieving it would necessitate a quadrupling of production capacity by 2030—a feat that seems unattainable at the current pace. This revelation calls for a reassessment of strategies and possibly, a more aggressive approach to foster growth and innovation in the EU's microchip sector.