THE HACK: Leaked Chips Act - Euractiv

This article examines the leaked European Chip Act, highlighting critical strategic challenges facing the European semiconductor industry. The proposed legislation reflects Europe's efforts to strengt... Read original →

The leaked EU Chips Act signals a pivot from rhetorical tech sovereignty to concrete industrial intervention. Technologically, Brussels will prioritize mature-node (≥28nm) IDMs for automotive resilience, yet remain dependent on ASML and Japanese/U.S. suppliers for EUV and advanced packaging—creating a 'manufacturing autonomy, equipment dependency' paradox. Compliance-wise, subsidy strings like local content rules and IP-sharing clauses will inflate operational complexity and fragment R&D coordination. In response, the U.S. may fast-track CHIPS funding to lock in TSMC and Samsung expansions, while foundries in Taiwan, China will deepen partnerships with German automakers to hedge geopolitical exposure. Over the next 18 months, semiconductor supply chains will harden into regional blocs: mature nodes localized, advanced nodes alliance-driven. Without breakthroughs in materials and equipment, Europe risks marginalization in the high-end ecosystem.