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Why “Strategic Autonomy” Is the Wrong Framework for Europe’s Chips Act 2.0 - American Enterprise Institute - AEI

www.aei.org 2026-07-31 American Enterprise Institute - AEI
Tags
Chips ActStrategic AutonomySemiconductor IndustryEU PolicySupply Chain SecurityTechnology SovereigntyUS-China CompetitionSemiconductor ManufacturingIndustrial PolicyChip Supply ChainNational SecuritySemiconductor Technology
News Summary
Europe's Chips Act 2.0 reflects the EU's strong desire to achieve strategic autonomy in the semiconductor industry, yet this framework contains fundamental flaws. The article argues that basing semico... Read original →
Industry Analysis
The EU's Chips Act 2.0 aims to bolster strategic autonomy through self-reliance, yet this approach overlooks the inherently globalized nature of the semiconductor industry. Technologically, it risks misallocating upstream EDA tools and midstream manufacturing resources, undermining international collaboration. From a compliance standpoint, excessive reliance on domestic investment raises operational costs and exacerbates talent shortages and uneven funding. In competitive dynamics, if the US tightens alliances with key partners, new supply chain barriers may emerge, limiting European firms' global reach. Over the next 12-24 months, without adaptive policy frameworks, the EU risks becoming isolated in the global semiconductor ecosystem. Only a balanced strategy of openness, cooperation, and independent innovation can secure its long-term industrial competitiveness.
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