19NOVEMBER 2023In the realm of modern technology, the importance of semiconductors is paramount. The current situation in the supply chain for semiconductors is pushing manufacturers to reinvest in new locations closer to their customers. The need for specialized services is growing. This brings Europe and dedicated service providers to the table. Semiconductors are omnipresent. They represent the heart of all digital devices, powering everything from the electronic systems in our smartphones to the digital components in vehicles. Their demand is particularly heightened by the automotive industry's shift towards electric vehicles. Electric vehicles, unlike their traditional counterparts, rely heavily on electronics for a wide range of functionalities. Be it battery management, where semiconductors are integral in ensuring that battery cells in EVs are charged and discharged in a properly balanced manner, or their pivotal role in thermal systems, ensuring batteries do not overheat and the interiors remain within the desired temperature range. This is not only necessary to ensure optimal performance but also to extend the lives of these batteries, which are, without a doubt, the most valuable component of an EV. Regarding drive control, motor controllers in EVs, powered by semiconductors, steer the power delivery, majorly influencing factors like acceleration and the overall driving experience. And finally, EVs now come equipped with many advanced safety and navigation features, such as lane-keeping assistance, automated parking, and collision prevention. These functions are all enabled by complex semiconductor systems, which process a vast amount of data in (near) real-time.As demand for smaller and more efficient chips increases day by day, the need to ensure a robust and sustainable supply chain gains in importance globally and locally. While Asia has been the traditional hub, there is a burgeoning effort within Europe, particularly driven in and by Germany and the EU, to create a resilient chip ecosystem inside Europe. This ambitious plan aims to develop semiconductor manufacturing in Europe from a current 10% to a robust 20% share of the global market by 2030.The Catalyst: Global Chip ShortageThe chip shortage of 2020/2021 significantly impacted many industries, most notably the automotive sector. This crisis underlined the essential nature of an independent and robust supply chain and paved the way for technological investment in Europe. With automation, energy efficiency, and advanced AI becoming more and more a prerequisite for future innovations, semiconductors undoubtedly represent the foundation.Unique Challenges of Chip ManufacturingManufacturing chips are not comparable to traditional production lines. The products are delicate, and even a minuscule particle of dust can jeopardize the functionality of an entire batch of electrical components. This sensitivity, therefore, requires a highly automated and stringently secured production environment, often operating under special conditions such as air-controlled rooms and purpose-built cleaning protocols.By Dana Nikolaj, Business Director Semiconductor, Leadec EuropeTHE RISING SIGNIFICANCE OF THE SEMICONDUCTOR INDUSTRY IN EUROPEDana NikolajCXINSIGHTS
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