The EU has aimed to expand its share of the global semiconductor industry to 30 per cent by 2030. To hit this target, the region needs to reexamine its strategy for the manufacturing of microchips. Europe's semiconductor sector has been devastated by global shutdowns and disruptions.
FREMONT, CA: The EU has aimed to expand its share of the global semiconductor industry to 30 per cent by 2030. But to hit this target, the region needs to reexamine its strategy for the manufacturing of microchips and focus on its strengths.
Europe is definitely on the cusp of a transformation that will reshape its future. Technology will power this change. Artificial intelligence, pervasive computing, and cloud-to-edge infrastructure will be essential in Europe reaching its digitization prospect. At the core of these technologies is the semiconductor chip.
This technology drives ingenious ideas and technology and revs the world's understanding. Europe's digital transformation is incorporated with revitalizing the semiconductor industry, devastated by global shutdowns, shipping disturbances, and geopolitical uncertainties. Europe must resurrect its semiconductor sector to be fit for the future.
No single institution or government can change a global industry alone, so the significance of cooperation cannot be overdrawn. Open ecosystems and in-depth partner relationships are needed to push Europe's semiconductor industry forward. But manufacturing semiconductors in Europe face consequential cost hindrances. It can cost 40 to 50 per cent more to operate a semiconductor fabrication plant in Europe when compared to other areas of the world, where administrations may subsidize manufacturing.
Historically, one of Europe's key advantages has been laboratory research and academia, but production has taken place at semiconductor fabrication plants in other countries. The region must aim to bring research and manufacturing closer.
By leveraging some of the world's most outstanding talent in Europe, the area can translate the region's excellence in research into industrial invention for shoppers globally. The overall European economy would partake between 77 billion euros and 85 billion euros in additional GDP over the next few years through chip investment.
Making Europe's semiconductor sector and supply chains resilient and sustainable will require much effort and investment. But Europe needs to discover its ambitions of staying a leading technology powerhouse while also elevating its GDP.